Dollar higher across the board
USD/JPY is up a half-cent to a session high of 103.22 as part of a broader US dollar move.
The move higher in the dollar is coinciding with a further fall in tech stocks. The market unsure what the agenda is going to be for Democrats now that they have control of the House. There’s fear they will go after big tech and that’s causing some risk aversion.
At the same time, there is an expectation of more spending. Ultimately that could lead to higher rates if it creates inflation but the market is also unsure how taxes will develop.
This all adds up to a bit of a confused flight to the safety of the US dollar but I don’t expect that to last.