Free Trial

Risk Appetite Wanes After Biden's Fiscal Address

FOREX

Light risk-off feel crept in as U.S. President-elect Biden unveiled his $1.9tn economic relief plan, with concerns surfacing over potential resistance from GOP lawmakers against generous spending. Simmering Sino-U.S. tensions surrounding the White House's actions vs. Chinese tech companies helped undermine sentiment. Safe haven demand lent support to USD & JPY, while USD/JPY held a tight range wavering around neutral levels, despite today being a Gotobi day.

  • Antipodean currencies helped bring up the rear in G10 FX space, alongside the NOK. AUD/USD and NZD/USD still sit a handful of pips lower apiece, albeit the prior day's lows remain intact.
  • The PBOC fixed USD/CNY at CNY6.4633, around 113pips lower than yesterday as greenback weakness translates into redback strength – the fix was broadly in-line with sell side estimates. USD/CNH was rangebound through the session.
  • As we are nearing the end of the week, focus turns to U.S. advance retail sales, Empire M'fing & flash U. of Mich. Setiment, UK economic activity indicators, French & Swedish CPI reports, comments from Fed's Kashkari & ECB's Visco and a panel discussion with ECB's Stournaras, Herodotou, Makhlouf & Vasiliauskas.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.