The US Dollar trades to fresh monthly highs going into the inauguration of President-elect Joe Biden, but it remains to be seen if the Greenback will continue to appreciate ahead of the Federal Reserve interest rate decision on January 27 as the rebound in longer-dated US Treasury yields starts to unravel.
Recent remarks from Vice-Chair Richard Clarida suggests the Federal Open Market Committee (FOMC) will retain the current policy at its first meeting for 2021 as the board member insists that the central bank “will continue to increase our holdings of Treasury securities by at least $80 billion per month and our holdings of agency mortgage-backed securities by at least $40 billion per month until substantial further progress has been made toward our maximum-employment and price-stability goals.”
