The risk-on attitude that characterized currency markets over the last months, supporting gains for risk-related currencies and penalising the safe haven dollar, appears to have lost some steam. The approval of the $1.9 trillion stimulus package proposed by President Biden may not be as straightforward as some thought, as several Republican lawmakers expressed reservations over the size and long-term consequences of the proposed plan. At the same time, the coronavirus is far from under control, hindering the pace and timing of the recovery which may be slower than many anticipated. Against this background it is not surprising to see, even if it is just momentarily, the US dollar once again on the front foot.
