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FUNDAMENTALS OF CURRENCY:

* The dollar had posted gains over the last couple of days as U.S. Treasury yields had risen with the release of strong retail sales data. The Federal Reserve had already warned, in the minutes from its January policy meeting that the labor market would take time to return to trend. And Treasury Secretary Janet Yellen made it clear that $1.9 trillion in pandemicrelief spending is still needed, defending the need for President Joe Biden’s plan despite the recent strength in retail sales.

* The pound traded near an almost three-year high overnight, helped by perceptions that Britain's aggressive vaccination program will result in the country coming out of lockdown more quickly than its neighbors. U.K. Prime Minister is due to lay out the country's roadmap for exiting lockdowns on Monday. GBP/USD traded up 0.1% at 1.3979, British retail sales fell 8.2% in January on the month, a much sharper fall than expected as non-essential shops went back into coronavirus lockdowns.

* The Euro to US Dollar exchange rate pushed higher today as US jobless claims caused investors to remain cautious of USD. A fall in US Treasury yields has resulted in the US Dollar weakening this morning, allowing the Euro to push further and gain on the back of the negative correlation. EURSD exchange rate movement will also continue to be dominated by any further coronavirus developments, with any indication that lockdowns across the Eurozone will be extended putting pressure on EUR.

Technical indicators (Daily):

* RSI- 42.5904  MACD- -0.1368

* MOVING AVERAGES (20,50,100)- (72.9516/73.3742/73.6152)

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