FX MARKET REPORT 20.01.2021

FX MARKET REPORT 20.01.2021

FX MARKET REPORT 20.01.2021

Daily Commentary
Daily Commentary
FX MARKET REPORT 20.01.2021
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FX MARKET REPORT 20.01.2021

The sentiment around the pound remains buoyed by the upbeat UK CPI  figures, with GBP/USD holding the higher ground near 1.3670 levels. The  major adds 0.28% on a daily basis. The UK Consumer Prices Index (CPI)  12-month rate came in at +0.6% in December when compared to +0.3% booked  in November while beating expectations of a +0.5% print. EUR/USD has  been advancing after US Treasury Secretary nominee Yellen made the case  for more stimulus. President-elect Joe Biden is inaugurated later in the  day and his first actions in office are set to boost bulls, outweighing  ECB worries. The European Central Bank is set to leave rates unchanged  but may warn about the higher exchange rate of the euro. Without cutting  rates, any attempt by the ECB to talk down the common currency will  likely be futile. However, Bloomberg reported that the ECB could launch a  strategy of controlling yield spreads. While lowering returns on  European debt may weigh on the euro, it would lower borrowing costs for  some governments, a positive development. Dollar Index, which tracks the  greenback against a basket of six other currencies, was down 0.2% at  90.278. USD/JPY was down 0.1% at 103.75, ahead of the Bank of Japan’s  latest rate-setting meeting on Thursday. AUD/USD was up 0.6% at 0.7736.

The sentiment around the pound remains buoyed by the upbeat UK CPI  figures, with GBP/USD holding the higher ground near 1.3670 levels. The  major adds 0.28% on a daily basis. The UK Consumer Prices Index (CPI)  12-month rate came in at +0.6% in December when compared to +0.3% booked  in November while beating expectations of…

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