XE Market Analysis: Asia – Jan 06, 2021

The Dollar rallied in morning N.Y. trade on Wednesday, despite risk-on conditions. The prospect of further massive fiscal stimulus under a Democrat controlled government boosted Wall Street, and weighed heavily on Treasuries, taking yields sharply higher, and likely providing some support to the USD. Bigger picture, more stimulus and nascent inflation concerns will likely keep the Greenback under pressure in the coming weeks, while prospects for tax hikes and new regulation could weigh on the Dollar as well.