· Dollar falls as improving sentiment boosts riskier currencies
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The U.S. dollar fell to a three-year low against its Australian counterpart and teetered near three-year low against the British pound as progress in curbing coronavirus infections boosted sentiment for riskier assets.
The greenback also slipped toward a three-year low against the New Zealand dollar as traders sought currencies with close ties to the global commodities trade due to an improving economic outlook.
The Australian dollar hit $0.7892, its highest since March 2018 while the New Zealand currency rose to $0.7315, its strongest since April 2018.
Vaccine rollouts will ease risks to Australia’s economy over the year, ratings agency Fitch said on Monday when it maintained the country’s top AAA credit rating, albeit with a negative outlook.
The euro last traded at $1.2124
The British pound bought $1.4030, close to a three-year high.
Against the yen, the dollar held steady at 105.45
Australia on Monday began its mass COVID-19 vaccine program as the country looked set to report no local cases for the third straight day, which gave the Aussie a boost.
Sterling is also in focus because British Prime Minister Boris Johnson will plot a path out of coronavirus lockdowns later on Monday, aided by one of the fastest vaccine rollouts in the world.
Dollar net short positioning fell last week to $29.09 billion, which is the lowest level since mid-December, according to calculations by Reuters and Commodity Futures Trading Commission data.
U.S. dollar net shorts have fallen for four straight weeks, which shows that there are still some investors who are optimistic about the greenback.
· U.S. 10-Year hit above 1.38%
Yields on 10-year Treasury notes have already reached 1.38%, breaking the psychological 1.30% level and bringing the rise for the year so far to a steep 43 basis points.
Analysts at BofA noted 30-year bonds had returned -9.4% in the year to date, the worst start since 2013.
“Real assets are outperforming financial assets big in ‘21 as cyclical, political, secular trends say higher inflation,” the analysts said in a note. “Surging commodities, energy laggards in vogue, materials in secular breakouts.”
· Crypto Market Cap Lost $70 Billion as Bitcoin Drops Below $56K (Market Watch)
The entire cryptocurrency market capitalization lost about $70 billion over the past 24 hours as Bitcoin slides below $56K.
Following the latest all-time high above $58,000, bitcoin retraced by over $3,000 to a low of $55,000. Most alternative coins have also lost some steam, with Ethereum dipping below $1,900. XRP is among the few exceptions with a 10% surge to $0.58. Meanwhile, the total market cap has dropped by around $70 billion.
$3,000 Drop For BTC After A New Record
The primary cryptocurrency had a wildly positive week in which the asset gained over $12,000 of value from its lowest point of $46,000 to several consecutive all-time highs. The latest record came just yesterday after BTC reached $58,400, which stands now as the current all-time high.
However, the bears took charge at this point and didn’t allow any further increases. Just the opposite, they drove the cryptocurrency south, and in the following hours, bitcoin lost over $3,000 of value to just north of $55,000.
Nevertheless, BTC started regaining some of its lost positions and currently hovers above the $56,000 price mark.
The technical indicators suggest that bitcoin could find further support at $55,000, $52,365, and $50,800 if its price continues retracing. Alternatively, BTC would have to overcome the resistance lines at $57,500 and $58,350 before potentially heading towards uncharted territory once more.
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ETH Beneath $1,900, XRP Surges To $0.60
Most of the larger-cap altcoins have retraced in the past 24 hours following days of registering substantial gains. Ethereum, which surged to a new all-time high at nearly $2,050 on Saturday, has lost almost $200 of value since then and is currently trading below $1,900.
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· Cost of flood damage to U.S. homes will increase by 61% in 30 years
Rising sea levels and extreme weather could cause $20 billion of flood damage to at-risk U.S. homes this year, rising to $32 billion by 2051, according to research from New York-based flood research non-profit First Street Foundation published on Monday.
· China’s foreign minister calls for the U.S. to remove tariffs and sanctions
China’s Foreign Minister Wang Yi on Monday called on the new U.S. administration to stop the “suppression” of Chinese technology companies, as he laid out conditions for U.S.-China cooperation going forward.
Citing national security concerns, former U.S. President Donald Trump sanctioned dozens of Chinese companies in the last three years.
· Fauci cautions against complacency as Covid infections decrease, warns daily case level remains high
· English schools will reopen March 8, outdoor sport starts again on March 29: Zahawi
Schools in England will re-open on March 8, while two families or six people will be able to meet outside from March 29 as the country’s COVID-19 restrictions are eased, vaccines minister Nadhim Zahawi said on Monday.
· Chinese state fund invests in gene firm BGI
The Chinese government has made an investment in BGI Genomics Co, a listed Chinese company that has supplied millions of COVID-19 tests globally as the gene firm seeks to fund exponential growth driven by the pandemic.
· India records 14,199 new COVID-19 cases, 83 deaths in last 24 hours
· Japan vaccine supplies to be limited, delaying shots for elderly: minister
· Australian PM is vaccinated as rollout begins
Australian Prime Minister Scott Morrison has received the coronavirus vaccine as the country prepares to start inoculations this week.
His jab was televised on Sunday in order to help boost confidence in the vaccine rollout across Australia.
Vaccinations officially begin on Monday and at least 60,000 doses are expected to be administered next week.
· ISRAEL'S Covid vaccine data has shown the jab stops 99 per cent of serious illness and is 99 per cent effective at preventing Covid deaths.
· Philippines approves Sinovac vaccine but not for all health workers
The Philippines has approved Sinovac Biotech’s COVID-19 vaccine for emergency use, but will not give it to healthcare workers at risk of exposure due to its varying levels of efficacy, its Food and Drugs Agency (FDA) said on Monday.
Late-stage trial data of Sinovac’s vaccine showed it had a lower efficacy when used for healthcare workers exposed to COVID-19 compared with healthy individuals age 18-59, said FDA chief Rolando Enrique Domingo.
· Strike grips Myanmar, anti-coup protesters defy junta's lethal warning
Myanmar police began to disperse protesters in the capital, Naypyitaw, on Monday as businesses around the country shut in a general strike called to oppose the military coup despite a threat from authorities that confrontation could cost lives.
· OPEC, U.S. oil firms expect subdued shale rebound even as crude prices rise
OPEC and U.S. oil companies see a limited rebound in shale oil supply this year as top U.S. producers freeze output despite rising prices, a decision that would help OPEC and its allies.
OPEC this month cut its 2021 forecast for U.S. tight crude, another term for shale, and expects production to decline by 140,000 barrels per day to 7.16 million bpd. The U.S. government expects shale output in March to fall about 78,000 bpd to 7.5 million bpd. [OPEC/M]
The OPEC forecast preceded the freezing weather in Texas, home to 40% of U.S. output, that has shut wells and curbed demand by regional oil refineries. The lack of a shale rebound could make it easier for OPEC and its allies to manage the market, according to OPEC sources.
“This should be the case,” said one of the OPEC sources, who declined to be identified. “But I don’t think this factor will be permanent.”
While some U.S. energy firms have increased drilling, production is expected to remain under pressure as companies cut spending to reduce debt and boost shareholder returns. Shale producers also are wary that increased drilling would quickly be met by OPEC returning more oil to the market.
· Oil rises as U.S. output slowly returns after winter storms
Oil prices rose on Monday as the slow return of U.S. crude output cut by frigid conditions raised concerns about supply, just as demand recovers from the depths of the coronavirus pandemic.
Brent crude was up 76 cents, or 1.2%, at $61.67 a barrel by 0104 GMT, after gaining nearly 1% last week. U.S. oil rose 74 cents, or 1.3%, to $59.98 a barrel, having fallen 0.4% last week.
Reference: CNBC, Reuters, BBC
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