The dollar is showing signs of weakness during early Tuesday trading, losing ground to other major currencies. Compared to last week, the markets appear less focused on the risk events lying ahead, such as the possibility of violent disturbances during Joe Biden’s inauguration, and are also less concerned that the massive stimulus program proposed by the incoming administration may trigger a change in the Fed’s current dovish stance. So, it seems that after some early January hesitation the dollar is likely to resume the bearish trend that characterized the second half of 2020, as investors, galvanized by hopes of a massive economic rebound later in the year, will once again embrace risk and leave the safe-haven greenback behind.
