DXY Rebounds amid Surging Covid-19 Cases in Europe & UK

A
coronavirus variant spread in Britain when the public was upbeat on the
vaccine inoculation. Several European countries have suspended travel
links to the UK as the new variant was identified 70% more contagious
than the original strain. Nonetheless, the new strain seems to have
spread to other countries unnoticed. What's worse, experts could not be
able to guarantee vaccine effectiveness against the new coronavirus
mutant.To get more news about [url=https://www.wikifx.com/]WikiFX[/url], you can visit wikifx official website.

　　GBP/USD today opened low at gap while the DXY gaped down, amid fears
about the variant. Previously, the pound has breached above 1.3600 in
spite of the deadlocked Brexit talks. But the new variant fueled
uncertainties and sparked a sharp correction in the overbought GBP/EUR.

　　On Dec. 20, Democratic and Republican leaders announced that a
bipartisan deal on a $900 billion relief package had been finalized and
could be quickly approved in the week. The positive dynamic has boosted
the DXY. As more deal-related speculation is about to emerge around
Christmas, GBP/EUR may see its correction extended, while the DXY could
find some impetus to rally further. Besides, Trump's campaign said it
would again ask the US Supreme Court to overturn results from the
election.
　　The seriously oversold dollar is expected to see its
rebound enduring amid the surging risk aversion. But the extension
depends on the Senate election results on Jan. 5. If Republicans can
hold either of the two Georgia runoff elections, pressures for the DXY
will be on the cards. If Democrats win both races, however, the
greenback will embrace upsides. With that said, traders are suggested of
keeping an eye on the Senate election on Jan. 5.