This is what you need to know to trade today Thursday, January 7:
Markets have been ignoring the assault on Capitol by supporters of President Donald Trump. Investors are focused on the Democrats’ victory in the Senate after the Georgia election, sending stocks higher. The dollar is split by the move away from the safe haven currency and higher yields. The coronavirus statistics, the vaccination process and the unemployment claims are in the spotlight.
American politics: The world was shocked to see a crowd incited by Trump storming the Capitol and tearing it apart. The president continued to make his baseless claims of fraud, and his supporters attempted to reverse the election results. Police eventually gained control of the assault, allowing Congress to continue to ratify President-elect Joe Biden’s victory.
The process, usually a short ceremony, will conclude later on Thursday. Stocks fell from the highs when the riots began, but ended higher as futures point to a positive open on Wall Street.
More fiscal stimulus may come: Democratic candidates Raphael Warnock and Jon Ossof won the Senate runoff elections in Georgia, allowing their party effective control of the upper house. That allows President-elect Joe Biden to push for additional aid packages, which is why markets are perking up.
He US dollar has had a mixed reaction. On the one hand, the safe-haven currency sold off but rallied as bond yields surged on the prospect of higher government debt. Ten-year Treasury bonds remain above 1%. Gold has also been affected, unable to sustain gains.
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The Federal Reserve Meeting Minutes The December meeting sent a balanced message, with some members ready to expand the bank’s bond purchase scheme and others willing to consider cutting it down. The Fed remains on hold.
He ADP private sector jobs report showed a disappointing loss of 123,000 jobs in December, lowering expectations for Non-Farm Payrolls on Friday. The data contradicts last month’s optimistic ISM Manufacturing Purchasing Managers Index.
He ISM Services PMI, to be released on Thursday, provides the final clue to official employment figures. Weekly jobless claims for the week ending January 1 are also of interest.
He coronavirus continues to rampage in the northern hemisphere. Britain is struggling harder than other countries, still increasing the distribution of vaccines. GBP / USD is trading below 1.36, also amid England’s strict lockdown.
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He EUR/USD it is struggling against the 1.23 level, mainly driven by the dollar. Preliminary eurozone inflation figures for December will remain subdued. German factory orders surprised with a 2.3% increase in November.
He Bitcoin has been spreading its earnings, hitting new highs above $ 37,000. Ethereum also keeps its earnings close to $ 1,200.
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