The dollar’s rebound from a near three-year low faded on Friday after U.S. Federal Reserve Chair Jerome Powell said interest rates would not rise any time soon. The release of details of President-elect Joe Biden’s $1.9 trillion stimulus on Thursday failed to give the greenback additional support.
Back in Europe, France announced Thursday it will bring forward its night curfew by two hours for at least a fortnight, while Germany’s government is weighing up tougher lockdown restrictions as countries throughout the continent try to slow the spread of the virus.
The dollar was little changed at 103.69 yen after slipping 0.1% while the euro eased 0.1% to $1.2143, on track for a three-day decline. The pound is off the lows against the dollar but remained under the $1.3700 mark.
Oil prices weakened Friday amid concerns about a resurgence of Covid-19 cases in China, the world’s largest crude importer, with the country reporting the highest number of daily cases in more than 10 months on Friday. That said, both crude benchmarks remain well above $50 a barrel.
Gold was slightly up on Friday morning, with Biden’s COVID-19 relief plan and Powell’s commitment to keep monetary policy dovish giving the safe-haven asset a boost.
On Friday, data includes Eurozone trade balance figures in the session ahead. In the US it will be a busy day, with Producer Price Index, Retail Sales, Industrial Production and Consumer Confidence numbers due in the NA session.