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Holiday-Thinned Trade Favours Greenback

FOREX

The greenback remains the best performing currency for 2021, rising further early Monday despite MLK Day in the US keeping most markets quiet and thin. Equity markets that remained open traded mixed but pretty non-directional, keeping a modest bidtone under the JPY, USD throughout.

EUR/USD hit new 2021 lows of 1.2054, falling through the mid-December lows in the process. This further relieves overbought signals present in the recent rally, opening the 50% Fib retracement of the November run-up at 1.1976 over the medium-term.

Focus Tuesday turns to the continued flow of earnings from the US, Germany's ZEW survey and a speech from BoE's Haldane.

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