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Dollar Stages Tepid Bounce Off Multi-Year Low

FOREX

After hitting a new multi-year low yesterday, the dollar bounced slightly Thursday, prompting a minor uptick in the USD index to the best levels since late December. The bounce, so far, has been insufficient to prompt any sort of trend reversal, but the greenback did see some stiff support as US equity markets once again hit alltime highs. Confirmation from US President Trump that he will oversee an orderly handover of power on January 20th followed the final hurdle being removed from President-Elect Biden also helped support the greenback.

The risk-on theme elsewhere was reinforced by the Japanese Ministry of Finance stating they would work with the central bank in order to prevent disorderly strengthening of the JPY - leading the Japanese currency to be the weakest performer in G10 Thursday.

Focus Friday turns to the US jobs report, with the US seen adding around 50k jobs in the month of December - the lowest since COVID crisis struck in early 2019. Canadian jobs data also crosses.

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