XE Market Analysis: Asia – Feb 25, 2021

The DXY printed fresh seven-week lows of 89.68 in N.Y. morning trade on Thursday, despite better U.S. data, which included lower than expected jobless claims, an in-line Q4 GDP revision, and a surge in durable orders. The data had little impact on the Dollar, as focus remained on inflation, with higher Treasury yields being read as more a function of inflation fears, than growth expectations. Higher inflation without accompanying monetary tightening, as the Fed remains in lower for longer mode, likely weighed down the USD.