Forex Today: Pressure mounts on the greenback as the market’s mood improves

Here is what you need to know on Wednesday, January 13:

 Major pairs spent most of the day consolidating near Monday’s closes, amid an improved market’s mood. Caution, however, prevailed amid the absence of a clear catalyst. The dollar came under selling pressure during the American afternoon, as equities trimmed intraday losses and posted modest advances, while US Treasury yields extended their advances.

On the positive side, market players speculate that upcoming US President Joe Biden will likely announce further fiscal stimulus in a press conference scheduled for next Thursday. US Fed’s chair Jerome Powell will also offer a speech the same day.

Regarding the pandemic, the UK reported 45K new cases, below the record highs reported last week. Nevertheless, authorities warned about the fragile situation of the health system. German Chancellor Angela Merkel repeated that the worst is still to come, adding that the country will likely remain under restrictive measures at least until April.

Good news came from Israel:  n initial analysis conducted by Clalit Health Fund, Israel's largest healthcare provider, revealed that there was a 33% drop in COVID-19 infections 14 days after the first dose of the Pfizer/BioNTech vaccine, as reported by Israeli news outlet Ynet. The country’s population if of 8.89 million and has already vaccinated roughly 20% of its population.

The Pound surged after Bank of England’s Governor Andrew Bailey cooled expectations of negative rates, after noting that they are a controversial issue. He also said that it’s too early to reach any conclusion about the need for future stimulus.

Gold prices remained within familiar levels, with spot ending the day at $1,851 a troy ounce. Crude oil prices did better, finding support in equities. WTI settled at $53.10 a barrel.

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