XE Market Analysis: Europe – Dec 16, 2020

The DXY dollar index has remained heavy, testing the 32-month low at 90.43. EUR-USD has concurrently been holding firm, though has remained off its 32-month highs at 1.2177-78. USD-JPY, now amid its fourth down day out of the last five, has ebbed to a five-week low at 103.42. As we have noted before, real interest rate differentials are imparting a bias for the yen to gain on the dollar, albeit a modest one. The nine-month lows, seen last month at 103.17-19, are back in scope.