Greenback Attempts Pullback

The dollar index ended 0.52% higher on Monday, pulling firmly away from the 90 handle.

Investors started to price in more stimulus once Joe Biden officially becomes the next President, after disappointing job numbers last week.

As the political turmoil rages on, the Democratic party started a new impeachment bid to remove Trump from office.

FBI officials have warned the public over continuous protests. With just over a week to go before Biden’s inauguration, will any more drama unfold?

Euro Diminishes as the Sell-Off Begins

The euro fell for a third straight session in a row, as it eventually ended 0.54% lower.

Optimism surrounding further stimulus boosted the greenback over the euro, whilst the rising number of new infections, and the appearance of new strains of the coronavirus weighed on economic growth prospects.

The 1.21 handle seems to be the next target for the currency pair, as Italy and Spain face warnings over their crippling debt.

Sterling Keeps Tumbling

The pound was another casualty of a strengthening dollar, closing 0.38% lower and breaking the 1.35 level.

Reports confirmed that UK retail sales were the worst on record, as sentiment took a battering.

Chancellor Sunak confirmed that the economy will get worse before it gets better, as the new national restrictions appear to have no end in sight.

Fiscal stimulus provided so far has amounted to more than £280bn, but will this be enough to keep employees furloughed for the foreseeable future?

Indices Fall from Record Highs

Stock markets retreated yesterday after a sustained rise to successive records last week. This came against a backdrop of rising coronavirus cases and US political turmoil.

All three major US indices pulled back, and tech shares also felt the fallout after social media platforms pulled the plug on President Trump.

The sell-off was evident as Apple, Facebook, Amazon, Google, and Twitter all fell by over 2%.