This is what you need to know to operate the friday january 20:
The dollar is licking its wounds, pointing to another week down as dovish expectations for the US Federal Reserve continue. Reuters reported that most economists expect a 25 basis point (bp) rate hike in the first quarter of this year, followed by a pause in their tightening cycle. Risk sentiment is in better shape so far on Friday, with the asian stocks recovering ground, while futures of the US S&P 500 they earn 0.20% on the day. Markets shrugged off Wall Street’s negative close overnight, with investors adjusting their positions ahead of China’s Lunar New Year holiday. In addition, the increase in the number of subscribers to Netflix, the American streaming giant, contributed to the optimism of the markets. Netflix closed last year with more than 230 million subscribers worldwide, exceeding market expectations.
The optimism of the markets is affecting the US public debt, which has motivated the yields of the bonds of the treasury try to bounce from multi-month lows. The pair USD/JPY advances above 129.00 amid firmer yields and a pause in the US dollar downtrend, although it maintains the range of the decision of the bank of japan.
Meanwhile, investors are weighing the latest comments from Federal Reserve policymakers ahead of the Fed’s “cooling off period” starting Saturday. Fed Vice Chair Lael Brainard stated: “Even with the recent moderation, inflation remains high, and policy will need to be tight enough for some time to ensure that inflation returns to 2% on a sustained basis.” , while New York Fed President John Williams said “fate, not speed, is the key issue for rate hikes.”
Addresses by moderate Philadelphia Fed President Patrick Harker and Gov. Christopher Waller will be delivered on Friday, a last chance for policymakers before the February 2 monetary policy announcements.
The AUD/USD and the NZD/USD maintain their recent gains, while the USD/CAD It is trading stable around 1.3450, amid a slight rebound in the US dollar and falling gold prices. WYOU. US Oil loses ground on the risks of recession and the increase in crude oil reserves from the EIA.
The pair EUR/USD extends its range above 1.0800, pending the speech of the president of the European Central Bank (ECB), Christine Lagarde. On Thursday, Lagarde asserted that “inflation is too high” and that the central bank will therefore “stay the course with rate hikes”, crushing market expectations of lower ECB rate hikes.
The pair GBP/USD has hit daily lows at 1.2353 on the back of disappointing UK retail sales, which fell 1% in December versus an expected 0.5% rise.
The price of Prayed it is easing from nine-month highs of $1,935 amid a rally in US Treasury yields. Focus remains on the Fed’s speech to be released later in the day.
Bitcoin remains in a tight range just below the $21,000 level, slightly down on the day, while ethereum is struggling above the $1,500 barrier amid news that cryptocurrency lender Genesis files for bankruptcy.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
