Asian Stocks Mixed, USD Bullish
The Us dollar is gaining mostly against majors with the rally well supported by rising yields in the US bond markets. Biden’s plan to boost the infrastructure adds to the positive stimulus. However, the US-China trade conflict under the Biden’s administration and overheating could spoil the upside momentum in the dollar in the longer run.
Asian shares dwindle during early Tuesday as traders fear default of a major US hedge fund. Markets continue following the collapse of Archegos Capital, a family fund that collapsed on Friday, causing leveraged trades to cause shocks in markets and incurring losses on several banks.
EURUSD is on the back foot, trading near the lowest this year as the old continent continues struggling with the vaccine rollout. GBPUSD is holding up as the UK continues opening up and cases are falling. Oil is stable following the reopening of the Suez Canal.
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