XE Market Analysis: North America – Jan 12, 2021

The dollar has taken a step back, correcting some of the gains that have been seen since it become clear that the Democrats in the U.S. were going to control the Senate, in addition to the Presidency and House. Some narratives attributed this in part to reportedly large demand for China’s yuan, linked to the proximity of the one-week Lunar New Year holiday, even though this is a month away (on February 11th). This saw USD-CNY drop back from the one-week highs that were seen yesterday.