Dollar mixed as control of senate hangs in the balance
“If you do not change direction, you may end up where you are heading.”
January 6, 2021
EUR/USD 1.2315 GBP/USD 1.3558 USD/CAD 1.2701 AUD/USD 0.7777 USD/JPY 103.18 USD/CNH 6.4456 USD/ILS 3.1851 USD/MXN 19.7913 USD/CHF 0.8792 USD/INR 73.12
The dollar approached 2018 lows as Treasury yields and commodity prices rose as results from Georgia’s senate runoff election show Raphael Warnock projected to flip the first seat, and the second seat still too close to call. Democratic control in the senate would provide a smoother runway for President-elect Biden to enact policy changes. Private payrolls posted the first drop since April as Covid impacts job growth.GBP
Sterling is down slightly versus the dollar with Monday’s high being near term resistance. The UK has surpassed 60,000 Covid cases a day as the country sits still in its third lockdown.EURThe euro trades to the highest level since April 2018. As members of the EU have struggled to vaccinate populations, Angela Merkel has an emergency meeting today to speed up the vaccine program in Germany as deaths continue to surge.CADThe loonie is little changed, yet slightly weaker versus the greenback amid profit taking at the lowest level since April of 2018.ASIA/PACIFIC
The yen lost versus the dollar after touching 9-month strength.
Tensions between the US and China increased yesterday as Trump ordered the banning of US transactions with four Chinese payment apps. In response, the NYSE said it would delist such groups, however quickly reversed its decision following intervention from the US treasury secretary.
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