Greenback Rallies as Markets Begin Week on Cautious Note
The US dollar sprung into life yesterday as financial markets started the new week on a nervous footing. Stocks sold off as participants are on edge over the current political situation in the US.
The GBPUSD pair broke into the $1.34 handle yesterday as broad-based US dollar strength gripped the market. EURUSD fell almost 1%, reaching $1.2135 at session lows. After such a soft patch for the buck, it was always expected that a fightback could come. While 1 day of gains certainly does not constitute a trend, yesterday’s advances offer the impression the recent declines may well have gone too far. Watch this space…
Stock markets sold off yesterday which no doubt assisted the gains in the buck. The democrats have formally filed a motion to push for impeachment in an attempt to oust Donald Trump before next week’s inauguration but also to prevent him from running for office in the future. With a solid majority in the House of Representatives, this bill will pass but it needs to achieve 2/3 support from the Senate which, with a current 50/50 split, maybe hard.
Today’s highlight will be in the form of Federal Reserve speeches. We’ll have 6 different speeches to observe.
8:32am, January 12th 2021
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