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Currency Market Analysis

Jan 22, 2021 | Currency Market Analysis

Global Themes

USD at two-week lows as Biden bump continues

The US dollar and other safe havens were mostly weaker as sharemarkets extended recent gains.

However, markets eased near the enad of the overnight session as US shares gave up some of this week’s gains.

Euro stronger

The euro was stronger after last night’s European Central Bank meeting made no change to policy.

Markets had earlier thought the ECB might flag

concerned over a stronger euro.

The Australian dollar climbed back towards two-year highs yesterday as the local jobs market continued to improve. The unemployment rate unexpectedly fell from 6.8% to 6.7%.

NZ CPI grows

The early focus was on New Zealand inflation with a higher-than-forecast jump of 1.4% in annual terms signalling price pressure were growing.

Later today, purchasing manager index numbers, which measure economic activity, are due in Japan, Europe and the US.

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