XE Market Analysis: North America – Jan 27, 2021

The DXY dollar index recovered most of the declines seen yesterday in lifting to a high at 90.47. A turn lower across European equity markets saw the dollar find some safe haven demand, while remarks from ECB member Knot provided a reminder that policymakers at the central bank are not too enamoured by euro’s recent appreciation. EUR-USD dropped over 50 pips to a low at 1.2113, which is 6 pips shy of yesterday’s low. Cable dropped back to the 1.3700 level after earlier carving out a fresh 32-month peak at 1.3760.