FX MARKET REPORT 06.01.2021

FX MARKET REPORT 06.01.2021

FX MARKET REPORT 06.01.2021

Daily Commentary
FX MARKET REPORT 06.01.2021
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FX MARKET REPORT 06.01.2021

The USD witnessed some fresh selling during the early European session  and pushed the GBP/USD pair to two-day tops, around mid-1.3600s. The  pair quickly reversed an intraday dip to sub-1.3600 level and moved into  the positive territory for the second consecutive session on Wednesday.  The uptick also marks the fifth day of a positive move in the previous  six and was exclusively sponsored by the emergence of some fresh selling  around the US dollar. Hopes for a strong global economic recovery in  2021 remained supportive of the underlying bullish tone in the financial  markets. This, along with speculations that the Fed will keep rates  lower for a longer period undermined the safe-haven greenback and  further extended some support to the GBP/USD pair. Bulls seemed rather  unaffected by concerns about the economic fallout from the imposition of  a third nationwide lockdown in the UK, which might have raised  prospects for additional policy easing by the Bank of England.  Nevertheless, the USD price dynamics remains an exclusive driver of the  GBP/USD pair’s intraday positive move. The UK Vaccines Minister Nadhim  Zahawi said Wednesday, the vaccine target set by Prime Minister Boris  Johnson is very stretching. However, he said that they are confident of  reaching the target. EUR/USD is currently trading at 1.2288, having  reached a high of 1.2327 early today. That was the highest level since  April 2018. The dollar index hit a fresh 2-1/2 year low on Wednesday  before firming about 0.1% to 89.575. The benchmark 10-year Treasury  yields rose above 1% for the first time since March.

The USD witnessed some fresh selling during the early European session  and pushed the GBP/USD pair to two-day tops, around mid-1.3600s. The  pair quickly reversed an intraday dip to sub-1.3600 level and moved into  the positive territory for the second consecutive session on Wednesday.  The uptick also marks the fifth day of a positive move…

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