Currencies Overview: The Dollar is supported by strong US data and in formation near $ 52,640

The dollar traded at slightly less than its recent highs, Thursday, February 18th, after it made its first consecutive gains over two weeks, as optimistic data reinforced expectations that the US economy is recovering from the Coronavirus pandemic at a pace that it captured than its peers.

Bitcoin traded near the new record high of $ 52,640, which it reached during the night, while its nearly 85% rise since the beginning of this month stimulates some analysts to warn that the rise may not continue.

Government stimulus money helped US retail sales to achieve a strong recovery in January, while industrial production data and producer prices also provided strong surprises on the rally.

Investors are expecting another batch of a $ 1.9 trillion package proposed by President Joe Biden to mitigate the fallout from Corona, as the president met with top global leaders on Wednesday to rally support for the plan.

Meanwhile, the US Federal Reserve’s meeting minutes confirmed the central bank’s readiness to allow the economy to grow overheating while keeping monetary conditions in an extremely accommodating state.

The dollar index fell 0.15% to 90.748 today, Thursday, in morning trading in London, after rising 0.2% overnight and 0.4% on Tuesday.

And the index has gained about 1% since the beginning of this year, to recover from a decline of nearly 7% in 2020, which continued until its lowest level in two and a half years at 89.206 in early January. The euro gained 0.2% to $ 1.2065 after dropping 0.5% overnight, the biggest decline in two weeks.

The dollar nearly stabilized at 105.735 yen, after declining on Wednesday after hitting a five-month high of 106.225.

The pound sterling traded above $ 1.39 against the US currency and reached a new high against the euro at 86.70 pence. The sterling is the best performing currency among the G10 countries against the dollar this year.