January 15, 2021 — 2 min read
NZDUSD opens at 0.7227 whilst the AUDUSD opens at 0.7786
The Global recovery sensitive NZD and AUD have firmed overnight and a USD selloff is back in full swing. News of a huge 2 trillion dollar stimulus package in the U.S will give risk currencies another lift higher.
Combine this with the continuous rollout of vaccinations - the boost to the U.S economy should be substantial.
The one positive for the Greenback was that U.S yields continue to rise, so the bond market is suggesting rate hikes down the track if inflation increases, but that is certainly a long way off.
New claims for the jobless continues to rise the U.S, as the pandemic still impacts the American economy. Until they can get the virus under control, these numbers will remain high, and have a huge impact on any thought of growth.
The incoming Democrats say they have a plan to tackle both the COVID-19 threat and the economy, but as we have seen, that will come at a huge cost to the American people.
The Euro is being weighed down by expectations that the ECB will be monitoring exchange rates more closely. They are concerned on the currency having a negative impact on inflation.
Will be Donald Trump’s last week in the White House. Lets see what drama unfolds before then.
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