Dollar falls with equity market rise

Key Movers

The euro struggled to break resistance at 1.2170 and again appears to be range-bound between 1.21 and 1.22 while Sterling continued its forward advance, touching 1.42 before edging lower through the latter stages of the daily session to rest marginally below 1.4150. Attentions remain with the reflation narrative.
There is no doubt about it, the pound is absolutely flying at the moment and continued to remain one of the top performing G10 currencies of the year. Yesterday, investors took stock of their returns with some profit-taking, which halted the pound’s advance for at least one day. Despite this, the pound remains very optimistic on the UK's vaccine rollout program and is also benefitting from a shift back towards risk in the market.
Global reflation expectations continued to steer direction through trade on Wednesday, forcing treasury yields higher and dragging the AUD through resistance at 0.7930. The AUD moved through 0.7950 overnight, marking fresh three-year highs at 0.7962 as it eyes a move toward and beyond 0.80 US cents. Commentary from Fed Chair Jerome Powell suggests the FOMC will maintain its current policy setting through the foreseeable future with expectations for inflation to remain below the 2% average for at least 3 years.