CAD is pulled down amid USD slump              

Key Movers

The dollar slumped significantly against a basket of major currencies on Thursday, falling below 103 as investors, motivated by the likelihood of a robust U.S. economy, invested in more speculative assets. The downward move came in tandem with soft treasury yields and unfazed markets after hawkish statements from Federal Reserve policymakers. Hawkish commentary regarding the future path of interest rates in the US did little to boost the dollar.

Today's economic data focusses on the weekly Initial Jobless Claims in the US. This data published by the US Department of Labor revealed there were 196,000.00 initial jobless claims last week, a slightly worse reading than the markets' expectations of 190,000.00.

EUR/USD rose from 1.0714 to 10763. Data released overnight showed the German consumer price index came in at 8.7% for January up from the previously reported 8.6%. Reports also show consumer sentiment improved in Italy and Spain while declining in France and Germany. European Central Bank Vice President, Luis De Guindos is scheduled to speak later today.

GBP/USD soared above 1.2148 today, a strong increase after starting the day around 1.2071. With no economic data scheduled for the UK today, most of the pair's appreciation can be attributed to the USD’s weakness.