Dollar extends two-day gains, Biden confirmed
The dollar is stronger versus G-10 counterparts with the UK pound being the most resilient. Violence at the Capitol yesterday delayed the confirmation of Joe Biden as the next president of the United States. Equities, treasury yields, oil and the US dollar all rose while gold slipped. Georgia’s senate race projected wins for democrats in both seats and investors flocked to riskier assets, keeping treasury yields above 1%.
“It is always wise to look ahead, but difficult to look further than you can see.”
January 7, 2021
EUR/USD 1.2266 GBP/USD 1.3576 USD/CAD 1.2726 AUD/USD 0.7733 USD/JPY 103.79 USD/CNH 6.4647 USD/ILS 3.1805 USD/MXN 19.9065 USD/CHF 0.8840 USD/INR 73.31
The dollar is up 0.4% amid broad gains, snapping a two-day losing streak and bouncing off its lowest level since February 2018. Early this morning, and following an act of violence by Trump’s most violent supporters, Joe Biden was formally confirmed as the next President of the United States. Both Georgia Senator seats went blue, giving a 50:50 split in the senate with Vice President-elect Kamala Harris as the deciding vote. Jobless claims came in at 787K vs 815K expected. Additional data today includes November trade balance and December ISM PMI.GBPPound was the most resilient versus the stronger dollar and is little changed with Monday’s high above 1.37 as near-term resistance.EURThe euro reversed a gain above 1.2344 and is now down 0.4% versus the greenback. Gains were capped by a 1.2350 barrier and higher treasury yields.CAD
The loonie gave up ground to the US dollar, falling for a second day pressured by profit-taking and hopes of an orderly transition between Trump and Biden bolstering the US currency.ASIA/PACIFIC
The Japanese yen loses ground for a second day to the dollar amid Japanese investor and importer demand.
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