- The dollar trades sub 90.00 .
- Investors are drawn towards riskier assets at the start of the year
- US Manufacturing PMI due later in the US session.
US Dollar Index (DXY), kicked off the year on the back foot heads towards the 2020 low of 89.50.
US Dollar Index extends losses
The dollar extends sell off below 90.00 amid risk on trade.
Investors shrug off surging covid numbers instead focusing on the vaccine rollout and a rebound in global economic activity. Risk sentiment is also buoyed by the huge amount of fiscal and monetary stimulus from the US government and the Fed in addition to many other central banks globally.
On the US calendar the final December Manufacturing PMI will be in focus ahead of the ISM Manufacturing on Tuesday, Wednesday’s ADP and Factory Orders reports, Initial Claims and the ISM Non-Manufacturing on Thursday and Nonfarm Payrolls on the final day of the week.