FX MARKET REPORT 21.01.2021

FX MARKET REPORT 21.01.2021

FX MARKET REPORT 21.01.2021

Daily Commentary
Daily Commentary
FX MARKET REPORT 21.01.2021
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FX MARKET REPORT 21.01.2021

GBP/USD caught aggressive fresh bids for the third consecutive session  on Thursday. The upbeat market mood undermined the safe-haven USD and  remained supportive. Sustained move beyond the 1.3700-1.3710 area has  set the stage for additional gains. EUR/USD regains upside traction  above the 1.2100 mark. Risk appetite continues to favour the single  currency. ECB’s interest rate decision due later in the session. EUR/USD  reverses Wednesday’s pullback and improves above the 1.2100 barrier on  the back of the renewed selling pressure hurting the greenback. The  reflation trade is back to the markets and sustain the fresh improvement  in the risk complex, particularly following Biden’s inauguration and  his plans to boost fiscal spending by around $1.9 trillion. Dollar  Index, which tracks the greenback against a basket of six other  currencies, was down 0.2% at 90.297, declining for a third day since  touching a near one-month high on Monday. USD/JPY was down 0.1% at  103.41, after the Bank of Japan kept monetary policy unchanged earlier  Thursday while revising up its economic forecast for next fiscal year.  Biden was sworn in as the 46th president of the United States on  Wednesday, and traders are seeing the change in administration as  increasing the chances of increased stimulus given the incoming  president has already proposed a $1.9 trillion Covid-19 relief bill. The  dollar started the year on a firmer footing as U.S. Treasury yields  rose on the back of expected greater borrowing to fund additional  stimulus.

GBP/USD caught aggressive fresh bids for the third consecutive session  on Thursday. The upbeat market mood undermined the safe-haven USD and  remained supportive. Sustained move beyond the 1.3700-1.3710 area has  set the stage for additional gains. EUR/USD regains upside traction  above the 1.2100 mark. Risk appetite continues to favour the single  currency. ECB’s interest rate…

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