Solid day for the US dollar

Forex news for New York trade on February 1, 2021:

Markets:

Gold up $14 to $1862WTI crude up $1.30 to $53.49US 10-year yields flat at 1.07%S&P 500 up 60 points to 3773USD leads, CHF lags

The FX and equity worlds were not on the same page today, which is undoubtedly a story of new month flows. Stocks were cheerful but the US dollar held a strong bid, even against commodity currencies like CAD despite a strong day for oil.

The dollar finished near its best levels of the day, sending the euro down to 1.2062 and cable back to 1.3664 after 1.3750 held on the topside.

Economic data continued to paint a mixed picture but I can’t say it was any kind of driver today. Strong manufacturing and rising prices paid is the baseline right now and the market is waiting for more news.

One thing that does strike me is how strong oil and commodities were despite the dollar bid. We’ll see if it holds up.

Forex news for New York trade on February 1, 2021: