XE Market Analysis: Europe – Jan 22, 2021

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The dollar has firmed up on a safe haven bid with the reflation trade having come to a firm stop. The DXY dollar index lifted moderately to a 90.26 high after basing out at a nine-day low at 90.05. The U.S. currency gained only marginally against the euro and yen, but racked up gains of around 0.4% to 0.5% against the pound and dollar bloc currencies. EUR-USD ebbed back from an eight-day high at 1.2178, while USD-JPY lifted to a two-day high at 103.70. Global equity indices corrected from record highs in the cases of the main U.S. indices and the MSCI Asia-Pacific index.