XE Market Analysis: Asia – Jan 11, 2021

The Dollar rallied to three-week highs in early N.Y. trade, taking the DXY to 90.72, up from overnight lows of 90.03. The Greenback later pared gains, as Wall Street posted losses, albeit from record closing highs on Friday. USD price action has shifted since the middle of last week, as higher interest rates, and prospects for more stimulus have raised hopes for a much faster economic recovery, once vaccines become widespread. Previously, the USD’s safe-haven status had seen moves negatively correlated to the risk-backdrop.