FX.co ★ 13.01.2021: USD determined to recover (DJIA, USDX, USD/CAD)

13.01.2021: USD determined to recover (DJIA, USDX, USD/CAD)

The US stock indices are trading mixed today. Investors await a series of macroeconomic data and political news. The US dollar is back in positive territory amid stabilizing US Treasury yields.

The Dow Jones dipped 0.17%. The S&P 500 also edged down 0.08%. On contrary, the Nasdaq gained 0.41%.

Today stock investors will focus on stocks of a few companies. Information provider IHS Markit will be purchased by data giant S&P Global soon. Visa stock is also under the spotlight as yesterday the company announced that it had cancelled plans to purchase Plaid because of antitrust concerns.

On top of that, Tesla stock could rise in value in light of the news that the company filed for opening a new entity in India.

Today traders are anticipating to a report on the US consumer inflation. Experts project an uptick in the CPI to 1.3% in December on a yearly basis from 1.2% a month ago. Besides, the index could have grown to 0.4% on month from 0.2%.

The US Treasury is due to report on the public budget tonight. The federal budget deficit is expected to widen by 38% to 200 billion dollars in December from the previous month.

The US Fed will post the monthly Beige Book with comments on economic conditions in the country.

On the political front, the House of Representatives is holding a bipartisan vote to impeach President Donald Trump. The article for impeachment accuses him of inciting violence.

Nevertheless, despite political jitters investors still express cautious optimism.

Following a brief dip earlier today, the US dollar resumed growth against the euro and the yen.

At the moment of writing this material, the US dollar index climbed 0.25% against its six major rivals to trade at 90.27.

Earlier today, the greenback tumbled due to a fall in the US Treasury yields. This factor still matters a lot for market participants. Yesterday, yields of the benchmark 10-year Treasuries jumped to the highest mark in 10 months. Today, yields declined to 1.122% from the previous close at 1.138%.

Despite a modest revival of the US currency, some analysts maintain their bearish stance on the greenback for the long term. In the course of time, the US dollar is likely to lose its investment appeal as a safe haven asset.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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