Stock markets ticked higher in the Asian session as \u00a0on US fiscal stimulus optimism.
\nSolid demand for 10-year notes in the latest monthly auction could \u00a0limit US Dollar \u2019s gains.
\nUS Dollar Index (DXY) price remains in a Descending Channel.<\/p>\n
The prospect of an accelerated \u00a0vaccine distribution and additional fiscal stimulus package from the Joe Biden administration is lifting sentiment.<\/p>\n
Australia\u2019s ASX 200 edged higher 0.11% after \u00a0upbeat local employment figures and Japan\u2019s Nikkei 225 surged 1.04%. In FX markets, the safe haven US Dollar fell versus its major peers.<\/p>\n
Looking ahead, US December inflation figures \u00a0Eurozone industrial production release for November will be in focus.<\/p>\n
Strong Treasury Demand Could Limit USD Upside<\/strong><\/p>\n Solid demand for US 10-year treasuries at the monthly auction limited the recent ascent in yields seen in recent days, and could hamper \u00a0the Greenback\u2019s recent rebound versus major counterparts.<\/p>\n Bond prices have dropped significantly so far this year as investors \u00a0price in additional and substantial fiscal support from the Joe Biden administration. The price decline is also a reaction to comments from several Fed members that the central bank could taper its QE program.<\/p>\n However, this seems unlikely given that the minutes from the December\u2019s FOMC December meeting said that that the central bank will continue purchases. \u201cuntil substantial further progress has been made towards the Committee\u2019s maximum employment and price stability goals\u201d.<\/p>\n Furthermore with demand in the Treasury\u2019s recent $38 billion 10-year note auction at its highest levels since December 2019the Fed unlikely to adjust the rate of its bond purchases<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Stock markets ticked higher in the Asian session as \u00a0on US fiscal stimulus optimism. Solid demand for 10-year notes in the latest monthly auction could \u00a0limit US Dollar \u2019s gains. US Dollar Index (DXY) price remains in a Descending Channel. The prospect of an accelerated \u00a0vaccine distribution and additional fiscal stimulus package from the Joe […]<\/p>\n","protected":false},"author":163946597,"featured_media":105087,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1381],"tags":[3135,1408,2416,1398],"class_list":{"0":"post-107770","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-usd","8":"tag-dxy","9":"tag-fed","10":"tag-treasury-yields","11":"tag-usd"},"acf":[],"yoast_head":"\n