XE Market Analysis: Europe – Feb 16, 2021

The dollar and more especially the yen came under renewed pressure as the global reflation trade continued. The MSCI Asia-Pacific and U.S. index futures posted fresh highs, although sentiment subsequently weakened somewhat to push these markets off their highs on news that China is considering limits on rare earth mineral exports to the U.S. Such minerals are essential for the production of advanced weaponry, among other uses. This shift in mood also saw the dollar and yen lift out of their lows versus other currencies, though both still remained at modest net-lower levels on the day.