The dollar was flat/choppy today and managed to hold on to the..

Recent targets have been met on this one. The dollar was flat/choppy today and managed to hold on to the 91 handle, off early highs of 91.30. Data out of the US was encouraging, with a strong ISM Services report and encouraging ADP employment data ahead of the official labour market report on Friday. On stimulus, the Senate approved a Budget Resolution measure in a 50-49 vote, with lawmakers voting along party lines (one Republican was unable to vote due to weather conditions), a step that lays the foundation for pursuing President Biden's USD 1.9trln stimulus plan via the reconciliation process. Analysts at Citi write this should see further USD weakness materialise, but its strategist write recent developments suggest the USD squeeze could extend further, but the desk does still believe 2021 will be a weak year for the buck.