The euro was little changed last week, holding its previous (big) gains. However, Germany extended its lockdown until the end of January, while the slow pace of immunizations and modest distribution weighed on the further gains for the euro.
The post-Brexit agreement euphoria is over and a new national lockdown, due to spreading of the more infectious strain of the coronavirus in the UK, are weighing on the British currency.
The Japanese yen continued to strengthen as the dollar remained subdued after fiscal stimulus measures were adopted in US Congress.
Citizens in the southern state of Georgia go to the polls on Tuesday to determine control of the Senate, which may determine the trajectory of the dollar in the first half of 2021.
US stock indexes continued to rise on post-Covid optimism but high valuations and uncertainty over Georgia elections are causing volatility. Investors have also been concerned about the fate of Jack Ma, the co-founder of China's most successful tech empire Alibaba, who has not made a public appearance or social media post since late October.
Gold prices rose sharply on the first trading day in 2021 in anticipation of a Democratic win in Georgia that would open the door to a (multi-)billion relief package in coming months. The 1900 resistance level has been broken.
Crude oil prices were volatile but consolidated earlier gains during the regular OPEC+ meeting, on Monday and Tuesday. Ministers of the oil producing grouping were discussing the details of the quotas from February onwards. Iran's seizure of a South Korean vessel on Monday simmered tensions in the Middle East, pushing the WTI oil price to close to 50 dollars a barrel.