Free Trial

Yellen To Defend Market-Based FX Rate, Biden Could Withdraw Keystone Pipeline Permit


Participants shied away from riskier currencies in a slow start to the week caused by a market holiday in the U.S., with markets awaiting the this week's congressional testimony from Janet Yellen, the inauguration of Joe Biden as the new U.S. President and a number of central bank decisions. The WSJ circulated a piece noting that Yellen is expected "to affirm the U.S.'s commitment to market-determined exchange rates when she testifies on Capitol Hill Tuesday, and she will make clear the U.S. doesn't seek a weaker dollar for competitive advantage." The article lent support to the greenback, allowing it to outperform all of its G10 peers save for the yen, which gained on the back of broader sense of caution.

  • CAD landed at the bottom of the G10 pile after a CBC News report suggested that Joe Biden would rescind presidential permission for the Keystone XL pipeline as soon as on his first day in office. USD/CAD rose past Friday's high.
  • The Antipodeans struggled alongside CAD & NOK as crude oil traded on a softer footing. AUD/NZD seems poised to snap its seven-week winning streak.
  • Chinese data dump provoked little in the way of immediate reaction in the yuan. China's economy grew 2.3% in 2020, coming in better than expected. Monthly economic activity data saw a beat in industrial output counterbalanced by a miss in retail sales.
  • GBP was weaker at the start to the week as the UK closed its travel corridors with other countries, while Foreign Sec Raab refused to rule out the prospect of forcing inbound travellers to quarantine in dedicated hotels upon arrival.
  • EUR was happy to look past the election of the new CDU leader over the weekend & continued political uncertainty in Italy.
  • Final Italian CPI, Canadian housing starts and comments from BoE Gov Bailey & Riksbank's Jansson take focus from here.

To read the full story



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.