The US dollar is starting the year on the back foot, losing ground to other major currencies during the early part of Monday’s session. Traders are carrying the optimism that defined the sentiment of the markets during the latter part of 2020 into the new year, as vaccine rollouts, promises of fiscal stimulus and the continuation of central bank dovishness continue to support hopes of a brighter future. Despite the latest wave of the pandemic that has engulfed Europe and the Americas, investors are choosing to look to a more positive future and this is one of the main reasons for the dollar weakness, with the greenback shedding the gains it had accumulated during 2020 thanks to its safe haven status.
