Japan Economy Minister, Nishimura is crossing the wires and has said, “Think the weak yen is a reflection of a strong US economy.”
Indeed, the DXY has rallied to the April 2017 levels. The NDDFX Senior Analysts have been discussing the state of play and the events which have propelled the greenback trough critical resistance levels at the start of this year. Follow the discussing here: US Dollar Strength: About more than the coronavirus’ contagion
In the US session, we had further evidence of strong economic data, with the Philadelphia Fed business survey surging from 17.0 in Jan to 36.7 in Feb (vs 11.0 expected). “Producer sentiment has been boosted by the US trade deals and reduced Brexit uncertainty, though it seems strange that February was the second-strongest month since 2014,” noted analysts at Westpac.
Fed Vice Chair Clarida said in a CNBC interview that it’s a “good picture” for the economy, with strong economic fundamentals and accommodative monetary policy. He noted the strength in the regional surveys, including the Philly Fed, and said a rebound in business investment is possible. While the US data continue to diverge from competitor nations, the US dollar will likely remain underpinned.