XE Market Analysis: Asia – Dec 21, 2020

The DXY rallied to seven-session highs of 91.01 overnight, with safe-haven buying supporting the Dollar following reports of a new, more transmissible strain of Covid in the U.K., which prompted widespread lockdowns there, and a rush to less risky assets. Wall Street opened sharply lower, though later cut its losses, as reports circulated the new virus strain may not be as virulent as the previous version, and will in all likelihood, not be resistant to the two-current approved vaccines. In addition, hopes that a Covid relief bill would be passed on Monday brought in some stock buyers.