The Cable is trying to go back above 1.3600 while the US dollar is losing some ground against a broad basket of currencies.
Yesterday, the US Dollar Index tried to close above the resistance at the 50 EMA at 90.95 but stopped to create adequate upside momentum and pulled back. Currently, the US Dollar Index is trying to test below the nearest support level at 90.70. If this attempt is successful, the US Dollar Index will move in the direction of the next support level at 90.50 which will be bullish for GBPUSD.
There are no significant economic reports scheduled to be released today in the US and UK, so foreign exchange market investors will focus on the general market sentiment and wait for any news ahead of Joe Biden’s inauguration.
At this moment, investors will try to assess the future foreign exchange policy of Joe Biden’s administration. Biden’s Treasury Secretary nominee Janet Yellen is expected to state that the US is not seeking a weaker dollar, but it remains to be seen whether an obvious commitment to market-set foreign exchange rates will have any significant impact on the dynamics of the US dollar.
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