XE Market Analysis: Europe – Jan 15, 2021

The dollar has traded firmer amid a backdrop of sputtering global stock markets, which, having lifted yesterday on reports of a $2 tln fiscal stimulus package from president-elect Biden, dropped back after he confirmed the package would total $1.9 tln. Market participants overlooked remarks from Fed Chairman Powell, who ruled out raising interest rates anytime soon while rejecting suggestions the central bank might start reducing its bond purchases in the near term, while the PBoC today conducted a liquidity-draining operation that added to a bearish tone in Chinese and other Asia markets.