Forex Today: Fed's Powell says too soon to talk about tapering, USD capped

Here is what you need to know Monday, January 15th 2021:

• The comeback in the US dollar remains the focus in the forex space for the start of the year. On Thursday, the greenback printed a fresh high to 90.57 but dropped to a low of 90.07 when Federal Reserve's Chair, Jerome Powell, said that it was too early to talk about tapering.
• Long-end US Treasuries sold off in the afternoon as well after Powell's speech. The 10-year and 30-year yields were ending 4.1bp and 5.2bp higher, respectively.
• Investors were possibly positioning for Biden's fiscal stimulus announcement (expected at $1.9tn) later in the day, 7.15pm (0015GMT).
• Hopes of higher government spending by President-elect Joe Biden's incoming administration and a vaccine plan has led to a rise in US Treasury yields, supporting the greenback.
• The greenback has also benefitted from expectations of a continued economic recovery in the United States while countries in Europe resort to lockdowns to fend off a second COVID-19 wave.
• Meanwhile, forex markets traded sideways with modest changes on the day. The DXY was 0.2% lower while the antipodean currencies were stronger with AUD and NZD ending 0.7% and 0.8% higher, respectively. CAD was 0.5% higher.
• EURUSD struggled to maintain the bid into 1.22, falling to a low of 1.2111. 
•  The S&P 500 was up 0.2%, the Euro Stoxx 50 was up 0.7% and the FTSE 100 was up 0.8%. WTI firmed 1.1% to $53.5/bbl. Gold added 0.6% to $1,850.1/oz.
• Cryptocurrencies were capped with BTC falling from 40,112.78 to a low of 38,200.
• Coming up, Watch Live: $1.9 trillion plan to be presented by Biden

DXY technical analysis