Greenback Continues Downside Bias
The US index dropped a further 0.25% at the start of the trading week, as it slumped further towards the 90 handle.
With its third straight day of declines, investors continue to focus on deliberations on Biden’s stimulus package and the expectancy of higher inflation.
In addition, America wakes up today with the knowledge that the country has passed a grim half a million deaths from the pandemic.
This led the EURUSD pair to rise 0.34% higher, as investors also expect a dovish tone from Fed Chair Powell later today.
With that being said, could the dollar sink back multi-year lows again?
Britain Reveals Roadmap to Recovery
Sterling maintained its multi-year high status, closing yesterday’s session 0.33% up.
Boris Johnson unveiled his four-step plan, each paced at least 5 weeks apart to ensure infection levels remain at a minimum.
This will see the UK gradually reopen and, if all goes as planned, be essentially back to normal by June.
With the UK ahead of the EU in the vaccination race, will the economy rebound at a much quicker rate?
Tech Stocks Slide as Nasdaq Plunges
US indices had a day to forget on Monday as both the Nasdaq and S&P ended lower by 2.5% and 1% respectively.
Big Tech stocks came under pressure with Apple, Amazon, and Microsoft all dropping 2%.
This comes as 10-year treasury yields jumped to their highest in a year, and they are on track for their largest monthly gain in three years.
Gold Takes the Ride
Gold jumped over 1.5% yesterday as it cemented its place back above the $1800 psychological level.
The yellow metal saw bulls intervene with the recent slump to monthly lows last week.
Stimulus and Covid-19 headlines continue to put gold on a rollercoaster ride, as investors now look towards this week’s fundamentals for further direction.
Oil Erases Losses
WTI rallied over 4% yesterday, punching through the $62 ceiling.
The upside remains supportive for the black gold. Even though the US passed 500,000 deaths from the pandemic, infections and deaths now continue to drop.
Also adding to the positive sentiment, Goldman Sachs upgraded its forecast for global crude oil demand for 2021, which could see oil rise to $70.