Expected Biden stimulus boosts markets and gold melts, focus is on Powell and jobless claims


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This is what you need to know to trade today Thursday, January 14:

News that Biden is poised to announce a $ 2 trillion aid package has been boosting the markets and weighing on gold. Investors are ignoring Trump’s second impeachment trial, turning their attention to a Jerome Powell speech, jobless claims and news about the coronavirus.

President-elect Joe Biden is ready to present an aid package worth around 2 trillion dollars, a significant complement to the recent $ 900 billion relief approved by Congress. Stock markets are rising in anticipation of a stronger economy and US bonds are selling. The increase in yields is relatively moderate and the dollar is stable. Gold has fallen sharply in response to rising yields, falling to fresh weekly lows at $ 1,827.

President Donald Trump was indicted for the second time in his term for his role in the Capitol riots. Ten House Republicans voted with Democrats, but the Senate is unlikely to hold a trial before January 20, allowing Trump to finish his term. Markets focus on Biden’s plans rather than political drama.

Jerome PowellChairman of the Federal Reserve speaks later in the day and is likely to deliver a message of stability regarding the Fed’s bond buying program. His colleagues have been talking about the possibility of reducing the program, somewhat boosting the US dollar. .

It is anticipated that initial unemployment claims in the United States stabilize below the 800,000 level as the US economy continues to fight COVID.

Vaccine: Johnson and Johnson have reported that their single-dose immunization project is approximately 90% effective after injection. The pharmaceutical giant’s encouraging results are offset by manufacturing delays, but may roll out later in the quarter. AstraZeneca said its two doses can be given 8 to 12 weeks apart.

Europe: Germany reported another daily death record and the end of the blockade is far away. The European Central Bank publishes the minutes of its meeting on Thursday and may repeat President Christine Lagarde’s message that the uncertainty has receded.

UK: Prime Minister Boris Johnson is under increasing pressure to re-tighten restrictions as pressure on hospitals intensifies. Mortality from covid hit a record Wednesday, but infections show initial signs of decline. GBP / USD continues to be buoyed by Britain’s accelerated vaccination campaign and harsh words from the Bank of England earlier in the week.

Chinese exports have increased in December, showing the strength of the world’s second largest economy. A delegation from the World Trade Organization arrived in Wuhan to investigate the origins of COVID-19.

See: US-China Relations and the Biden Administration: The Trade War Is Over, But You Can’t Go Home Again

The cryptocurrencies They have resumed their gains after consolidating on lower ground. Bitcoin is trading above $ 37,000, Ethereum above $ 1,100, and XRP around $ 0.30.

See: Five factors that will move the US dollar in 2021 and not necessarily lower


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