As the holiday-shortened week draws to a close the US dollar will remain in the spotlight after enduring a wave of selling across Thursday’s session. The pound was unable to capitalise on the broad-based weakness and meandered to the low $1.37s in late New York dealing hours.
Risk-related assets such as equities remain well bid, however, it’s become clear various global governments are now pushing for fiscal change for both wealthy individuals and the corporate world. The latest concept by Treasury Secretary Yellen, urging for a global uniform corporate tax system, is evidence of this. The smooth ride higher for risk assets may come into headwinds as governments attempt to recoup the vast amounts of debt taken on to battle the pandemic.
Today’s session is a quiet one data wise with only a handful of 2nd tier releases on tap. The key focus will remain on the greenback’s performance as the week winds down as well as on the pound which is another currency on the ropes this week.
Written by Viv Savani. 8:22am, April 9th 2021
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