Home Article Market News BIAS FOR EACH CURRENCY ON 12 JANUARY 2021

BIAS FOR EACH CURRENCY ON 12 JANUARY 2021

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🇺🇸 USD – BULLISH
1️⃣ Higher US yields keep fuelling the recovery of the index.
2️⃣ Recently confirmed Democrats’ control over the US government along with a deteriorating job market paved the way for more stimulus in the US.

🇬🇧 GBP – BULLISH
1️⃣ BoE Governor Bailey downplayed negative rate speculations and boosted the sterling.

🇪🇺 EUR – BEARISH
1️⃣ Concerns over rising COVID-19 cases, fresh lockdowns and the slow pace of vaccination.
2️⃣ The ECB said on Thursday that the prospects for the roll-out of vaccines were encouraging but it would “take time” before widespread immunity was reached and the economy could return to normal.

🇳🇿 NZD – BEARISH
1️⃣ Expectations for US additional stimulus measures to help buttress the economy until vaccine rollouts allow for the easing of lockdown measures.
2️⃣ The negative risk tone weighing on the NZD.

🇨🇦 CAD – BULLISH
1️⃣ Rallied in oil prices support the commodity-linked currency the CAD.

🇦🇺 AUD – BEARISH
1️⃣ Expectations of a larger government borrowing continued pushing the US Treasury bond yields higher.
2️⃣ The negative risk tone weighing on the AUD.

🇯🇵 JPY – BULLISH
1️⃣ Concerns about the continuous surge in coronavirus cases and the imposition of strict lockdown restrictions in European/China tempered enthusiasm.
2️⃣ A softer tone in the equity markets, which extended some support to the safe-haven Japanese yen.

🇨🇭 CHF – BULLISH
1️⃣ A slight deterioration in the global risk sentiment might undermine demand for the safe-haven Swiss franc.
2️⃣ Investors turned cautious amid worries about the continuous surge in coronavirus cases and the discovery of new variants of the highly contagious disease.

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