US Open Note – Dollar lacks direction amid market calm; US stocks freeze



Dollar flattens in absence of data today; pound rises

A calm day is on the table as dollar/yen is stable around 109.35 and the US dollar index is moving horizontally and marginally below the 200-day simple moving average (SMA) as the US data in the next days may drive the greenback even higher. The US Congress is starting to work on the infrastructure package with President Biden meeting centrist lawmakers from both parties. It is noteworthy that the US fiscal stimulus will be larger than forecasted at the beginning of the year.

Euro/dollar is creating a positive day above the 1.1900 round number, while the euro is falling versus the British pound after four straight days of gains. Looking at pound/dollar, the pair found strong support at 1.3670 once again, being one of the strongest currencies today ahead the race to replace Angela Merkel as the head of the Christian Democratic Union and Christinan Social Union.

Futures tracking the S&P 500, Nasdaq 100, and Dow Jones are currently pointing to a mildly negative open on Wall Street after several days of gains.

In antipodean markets, the aussie and the kiwi are in a flattening mode over the last couple of weeks, fading the bearish structure.

In other commodities, oil prices are steady, holding below $60 per barrel with all assets confirming the comments from Jerome Powell that the US economy is getting ready for a strong improvement despite the coronavirus conditions. The gold market is standing around $1,735/per ounce, while silver is fighting with the 200-day SMA around $25/per ounce. The Canadian dollar managed to post losses against the greenback due to the neutral-to-negative mode in oil.

Coronavirus update: UK reopens

It’s a big day in the UK as it is getting into the next step for reopening with non-essential retail and leisure sites to start again and restaurants permitted to serve people outdoor. The country is also close to herd immunity, as nearly the three-quarters of the population has antibodies against Covid-19.

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