The dollar started the year off poorly
Dollar weakness is a consensus trade in 2021 as the trend continues. Oftentimes the consensus is wrong but it wasn’t on the dollar — at least in the first few hours of trading.
The dollar is still near the bottom of the major currency market today (ahead of only GBP) but it’s recouped some losses in the past few hours. Some of that comes with Treasury yields ticking higher.
The first big dollar test will be if US 10s rise above 1%. A break of that is a sure thing if Democrats win both seats in tomorrow’s election.