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Greenback At New Weekly Low as Biden White House Takes Shape

FOREX

The USD's softer early Thursday, prompting the USD index to edge below the Monday low ahead of the NY crossover, as markets confirm a retreat from the 50-dma resistance earlier in the week at 90.887. Biden's White House is continuing to take shape, with a few more announcements this morning giving markets a further glimpse of the new administration.

Reports this morning show Biden is to use the production act to boost the supply of vaccines, PPE and COVID-19 tests, and is to clamp down on airport mask-wearing and air travel tests - signalling the new admin's commitment to arresting the spread of the virus.

Equities are higher in Europe, translating to modest risk-on in currency markets. Alongside the weaker greenback, JPY is also soft, with CHF also on the backfoot.

Best performers so far Thursday are GBP, NOK and NZD, with GBP/USD seeing another notable rise to multi-year highs of 1.3746.

Focus turns to the ECB rate decision and press conference, as well as policy statements from the South African, Turkish central banks.

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