XE Market Analysis: North America – Jan 13, 2021

The dollar lifted out of lows, aided by gains against the euro after ECB’s Villeroy fired a rhetorical volley across the bows of euro bulls, reminding the forex market that he and his colleagues “are monitoring with particular attention the negative effects of the euro exchange rate.” Market participants, meanwhile, overlooked a much stronger than expected Eurozone industrial production data. The ECB’s concern about euro appreciation alongside prospects for an unrestrained Biden presidency in the U.S. are grounds to reconsider the upside potential of EUR-USD.