Here is what you need to know on Wednesday, January 13: The US dollar is on the back foot after a bond auction drew high demand, consequently pushing yields lower. Markets seem content with the Fed’s reluctance to taper its Quantitative Easing scheme. US inflation and a speech by the ECB’s Lagarde stand out on Wednesday. Coronavirus and vaccine headlines are eyed. US ten-year Treasury yields are hovering around 1.12%, down from a peak above 1.18%. The decline – which carried the greenback lower – came after investors showed robust demand for new ten-year bonds in Tuesday’s auction. A 30-year bond offering is eyed on Wednesday as the dollar remains sensitive to returns. US Politics: The House of Representatives is set to impeach President Donald Trump for incitement of an insurrection as early as Wednesday. Vice-President Mike Pence rejected a call to oust Trump using the 25th Amendment. President-elect Joe Biden is set to take office in one week and investors are focused on his economic plans rather than the political drama which is grabbing the headlines. US Consumer Price Index figures are set to show a pickup in inflation in December, also feeding into the Federal Reserve’s calculations. See US CPI December Preview: Markets take the Fed’s cue and look away The Federal Reserve’s Richard Clarida and Lael Brainard are slated to speak late in the day, and any comments about the bond-buying scheme will be closely watched. Both are permanent voters on the Fed’s board. German officials warned that the current lockdown will probably run beyond the current expiry date of February 1 amid rising infections. Italy’s government is on the verge of collapse after former Prime Minister Matteo Renzi threatened to leave the coalition amid disagreements over budgets. EUR/USD is holding onto gains above 1.2215 despite these developments. Christine Lagarde, President of the European Central Bank, speaks later in the day. Brexit: The EU and the UK are set to return to the negotiating table to discuss topics left untouched in the trade deal, most important financial services. Britain’s vaccination campaign ramp-up is bearing fruit, with some 4% of the population receiving at least one jab. UK hospitals are under growing strain, including increased use of ventilators. GBP/USD jumped on Tuesday after Bank of England Governor Andrew Bailey downplayed setting negative interest rates by calling them “controversial.” The US vaccinated less than 3% of its population against COVID-19 while European countries’ rates are hovering around 1%. An initial study in Israel, the world leader with 22.2%, showed that the Pfizer/BioNTech immunization reduces contagion, not only illness. Bitcoin has resumed its decline, trading at around $34,000 and failing to recapture the highs. Ethereum and XRP are also below their recent tops. More Extreme emotions are dollar-positive, where next from here? FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Gold Price Analysis: XAU/USD to test $1872 amid US stimulus hopes and covid woes FX Street 2 years Here is what you need to know on Wednesday, January 13: The US dollar is on the back foot after a bond auction drew high demand, consequently pushing yields lower. Markets seem content with the Fed's reluctance to taper its Quantitative Easing scheme. US inflation and a speech by the ECB's Lagarde stand out on Wednesday. Coronavirus and vaccine headlines are eyed. US ten-year Treasury yields are hovering around 1.12%, down from a peak above 1.18%. The decline – which carried the greenback lower – came after investors showed robust demand for new ten-year bonds in Tuesday's auction. A 30-year… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.