Dollar Down Over Improving Risk

FxPremiere.com – Forex Signals | The dollar was down on Friday morning in Asia, as investors continue to celebrate the Joe Biden administration’s inauguration by turning to riskier currencies. There were also renewed bets that an economic recovery from COVID-19 could push the dollar even lower.

FX Signal

Sentiment-driven moves have eroded the dollar’s gains since the Democrats won control of the U.S. Congress earlier in the month. The dollar had risen along with U.S. Treasury yields on expectations of more stimulus measures and government borrowing under the Joe Biden administration. Dollar Up Holds Onto Biggest Gains

“It’s pretty hard to run away from the enduring strong negative correlation between U.S. equity performance and the U.S. dollar” as stock market sentiment spills over, National Australia Bank (OTC:NABZY) head of FX strategy Ray Attrill told Reuters.

“I think the market is far happier focusing on the potential positives of the Biden administration’s proposed fiscal plans…rather than any of the negatives … for the time being, while it seems to be onwards and upwards for stocks, it’s put the dollar back on the back foot,” he added.

The USD/JPY pair inched up 0.09% to 103.57. Forex – Dollar Weakens as Risk

The AUD/USD pair was down 0.24% to 0.7744 the NZD/USD pair was down 0.25% to 0.7194.

The USD/CNY pair edged up 0.14% to 6.4687.
Dollar Down Over Continued Stimulus

The GBP/USD pair edged down 0.16% to 1.3710. The pound saw a two-and-a-half year high during the previous session over hopes that the U.K.’s COVID-19 vaccine roll-out could see a rebound in economic growth.

Dollar Down Over Brexit, U.S. Stimulus Risks