Forex Today: Risk turned on, dollar trades uneven across the board

Here is what you need to know on Thursday, January 21:

Joe Biden became the 46^th US President, in a quiet inaugural ceremony. Wall Street soared to record highs as he was sworn in, holding on to gains by the end of the day. Hopes for more stimulus underpin equities.  

The dollar had an uneven performance across the board, as investors eagerly wait for a catalyst. So far this week, the macroeconomic calendar had little to offer, although the Bank of Canada opened the central banks’ book of the year.

Canada also reported December inflation figures, which were mostly discouraging as the annual CPI resulted at 0.7% against expectations of 1.0%. Nevertheless, and on-hold BOC that pledged to keep rates low until inflation reaches the 2% inflation backed the CAD, alongside the solid performance of equities.

Better than anticipated UK inflation helped GBP/USD to reach fresh multi-month highs above the 1.3700 figure, but the pair retreated afterwards, as the dollar appreciated against its European rivals.

In the UK, PM Boris Johnson said that record coronavirus-related deaths have not yet found a ceiling. More deaths are expected due to the spread of contagion of the new variant, although contagions keep receding due to the strict lockdown measures adopted last December.

The Aussie, on the other hand, surged past 0.7700 vs the dollar, also following the lead of equities and commodities.

Gold recovered its shine and traded as high as $ 1,870 a troy ounce. Crude oil prices, however, remained within familiar levels, posting modest intraday advances. The barrel of WTI trades around $ 53.30.

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