XE Market Analysis: Europe – Jan 26, 2021

Dollar firmness has been ensuring amid risk-wary conditions across asset markets, despite U.S. Treasury yields having dropped sharply over the last day, eroding the dollar’s yield differential advantage against peers. This indicates that the market is utilizing the dollar as a safe haven vehicle once again, with the DXY dollar index vaulting to a six-day high at 90.59. The one-month peak, seen on January 18th, is at 90.95. EUR-USD dropped to a five-day low at 1.2108, and Cable to a one-week low at 1.3610.