XE Market Analysis: Europe – Jan 20, 2021

The dollar has traded softer for a third day amid a backdrop of buoyant global stock markets. The MSCI Asia-Pacific index clocked a fresh record high. This followed a positive session on Wall Street, though the main indices there closed below their recent record peaks. The ‘looking-past-Covid’ reflation trade seems to have stirred, following recent dormancy, aided by the anticipation of a big spending Biden era in the U.S. Biden will be inaugurated as the 46th president later today.