This is what you need to know to trade today Monday, January 18:
Markets move mixed on “Blue Monday,” with the dollar holding onto gains related to risk aversion, while upbeat Chinese growth partially offsets the sadness. The UK and the US are stepping up their vaccination campaigns as tension mounts ahead of President-elect Biden’s inauguration. US markets are closed.
The dollar holds higher ground after disappointing US retail sales and initial jobless claims triggered a move towards shelter sure at the end of last week. On the other hand, stock markets are celebrating China’s gross domestic product GDP, which grew at an annualized rate of 6.5% in the fourth quarter of 2020. The world’s second-largest economy has returned to pre-pandemic growth levels.
He EUR/USD It has been trading below 1.21 as investors are closely monitoring Italy’s current political crisis. The government of Prime Minister Giuseppe Conte faces votes of confidence. In Germany, Chancellor Angela Merkel’s CDU party elected centrist Armin Laschet as the party leader, en route to the September general elections. The European Central Bank’s decision is expected on Thursday.
He GBP/USD it is below 1.36, ignoring the rapid expansion of Britain’s vaccination campaign, which has already approached 6% of the population. Talks between the EU and the UK on post-Brexit service agreements are expected to advance at a snail’s pace.
The big event of the week is the inauguration of President-elect Joe Biden on Wednesday. Investors are ignoring fears of violence from supporters of outgoing President Donald Trump and are awaiting a series of Executive Orders from the incoming administration.
Biden will also try to pass its proposed $ 1.9 trillion aid package. Janet Yellen, the nominee for Secretary of the Treasury, is prepared to declare that the policy of the dollar would be “market oriented”, which could allow the dollar to fall.
Jerome PowellChairman of the Federal Reserve, and Yellen’s successor, last week pledged a very accommodative policy.
He Canadian dollar is on the defensive in response to media news that the incoming Biden administration would cancel the Keystone XL pipeline. The Bank of Canada announces its decision on Wednesday.
He oro it has been moving higher on expectations of stimulus, both monetary and fiscal, recovering from lows.
The cryptocurrencies They have traded on lower ground, with Bitcoin hovering around $ 35,000.
US traders are on vacation on Monday due to Martin Luther King Day, which will lead to low trading volume during the American session.
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
