This is what you need to know to trade today Thursday, January 28:
He market sentiment is sour amid concerns about corporate earnings in the tech sector, the exuberance of stocks and concerns about the coronavirus. The Fed’s dovish stance failed to cheer up investors, who are now turning their attention to US fourth-quarter growth figures, jobless claims and developments around vaccines.
Gamestop: An army of retail investors boosted the video game company’s stock, challenging the hedge funds. The frenzy is seen as a sign of exuberance and the last leg of a rally, and it also worries regulators and even the White House.
The Federal Reserve it has left its monetary policy unchanged as expected, acknowledging recent weakness and remaining optimistic about a vaccine-driven recovery in the second half. Fed Chairman Jerome Powell stressed that any talk about the withdrawal of the stimulus is “premature” and is committed to supporting the economy. However, his pessimistic words failed to cheer investors.
See: Fed Quick Look: Powell Refuses To Stop Stock Market Party, Dollar May Suffer
Facebook and Tesla they reported results on Wednesday, below investor expectations. These disappointments added to the bad mood of the market. The safe-haven US dollar is strengthening.
Stimulus: President Joe Biden’s team continues to discuss its $ 1.9 trillion stimulus bill with lawmakers, but is also apparently ready to go it alone. Treasury Secretary Janet Yellen participates in the deliberations.
The United States publishes the figures for gross domestic product GDP for the fourth quarter Thursday. An annualized increase of 3.9% is expected after the sharp changes in previous quarters. Durable goods orders for December mostly fell short of expectations, lowering GDP expectations somewhat.
The U.S. unemployment claims they are also of interest on Thursday. Requests are projected to fall from 900,000 last week, but they remain concerning, especially as the latest figures have shown that economic misery is spreading beyond sectors sensitive to the pandemic.
He EUR/USD is on the defensive due to risk aversion sentiment and also warnings from the European Central Bank about the high euro exchange rate. Officials also opened the door to further cut the ECB’s deposit rate, which stands at -0.50%. Germany and Spain publish preliminary inflation figures for January.
The EU and AstraZeneca they still disagree on vaccine deliveries. The pharmaceutical company assures that Brussels was late to sign a contract and, therefore, will suffer delays, while the bloc demands immediate deliveries. Regulators are set to approve the vaccine on Friday, and dose shortages have already been reported in Spain. France is considering new restrictions, but has yet to make a decision.
The Pfizer / BioNTech Vaccine It has proven effective in neutralizing not only the British variant, but also the South African, although with less impact on the latter.
Cryptocurrencies: Bitcoin is trading above $ 31,000 after falling below the $ 30,000 level previously. Ethereum hovers around the region of $ 1,300.
He oro is on track to close January with a loss, for the first time since 2013.
See: Gold 2021 Forecast: XAU / USD Will Look To Extend 2020 Gains With Central Banks Remaining Pessimistic
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