Forex Today: Dollar down, focus on US Georgia runoffs

FXStreet Team FXStreet

Here is what you need to know on Wednesday, January 6:

The American dollar resumed its decline this Tuesday, particularly hit against commodity-linked currencies. AUD and CAD surged to fresh multi-year highs against the greenback, as crude oil prices surged following an OPEC+ announcement on holding oil output cuts. The organism agreed with Russia that this last will be able to raise production by 65 bpd, while Kazakhstan will increase its production by 10K bpd.

The EUR/USD pair flirted with 1.2300, holding near its 2020 high at 1.2309. The British Pound posted a modest advance as coronavirus related concerns continue to undermine the UK currency. The county reported 60,916 new cases in the last 24 hours, while the death toll hit 830, more than doubling the previous day’s figure.

US Treasury yields ticked higher, with the yield on the benchmark 10-year note settling at 0.96%.

European indexes closed the day mixed as investors were cautious. Wall Street, however, posted a nice comeback, recovering most of the ground shed on Monday.

The focus is on the US Georgia runoff. The state is voting senators. Right now, Republicans have 50 seats, while Democrats hold 48. The result could be a game-changer in the upcoming Joe’s Biden presidency.

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GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

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Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

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