This is what you need to know to trade today Monday, January 4, 2021:
The new year has started with the dollar on the defensive and a cautious sentiment in the market. Investors are concerned about the rapid spread of the coronavirus and the slow rollout of vaccines. PMI Purchasing Manager Indexes and Georgia US Special Election will be the focus.
Coronavirus: The disease that dominated 2020 continues to spread rapidly in 2021. Contagious variants found in the UK and South Africa, along with family gatherings during the holidays, may have contributed to increased cases and pressure on hospitals, including in Australia and Japan, who consider tightening their rules. The United States exceeded 350,000 deaths from COVID-19 and infections in the United Kingdom exceed 50,000 per day.
Vaccines: Frustration is growing in Germany and elsewhere over the slow distribution of the Pfizer / BioNTech vaccine. Pharmaceuticals are expected to increase production in the coming weeks. Top US epidemiologist Anthony Fauci said vaccines should increase. The UK starts administering the Oxford University / AstraZeneca vaccine on Monday after approving it in the final days of 2020.
United States Policy: The southern state of Georgia has two runoff elections for the Senate, which will determine control of the upper house. Democrats must win both races to gain effective control of the upper house and enact the stimulus policies the markets want. Opinion polls show tight careers and the count can take several days.
President Donald Trump signed a $ 900 billion aid package during the holidays after a delay. He is still trying to overturn the election results, considering congressional ratification scheduled for Wednesday. He oro, which is heavily reliant on additional stimulus, has been climbing and trading above $ 1,920.
The Final Markit PMI Purchasing Managers Indices for December They will confirm modest growth in France, strong expansion in Germany and the UK and moderate in the US Markets will watch Tuesday’s ISM Manufacturing PMI, the first clue to the NFP non-farm payroll report.
While stock markets are only slightly higher, the safe-haven dollar extends its decline, with the EUR/USD rising towards 1.23 and the GBP/USD close to 1.37, extending its gains after the UK is completely out of the EU. London and Brussels signed a post-Brexit trade deal on Christmas Eve.
He USD/JPY it is falling below 103 while currencies related to commodity prices are rising against the dollar.
Cryptocurrencies continue their upward trend, with Bitcoin trading around $ 32,000 after going over $ 34,000 during the holidays. He Ethereum it is also skyrocketing, trading above $ 1,000. On the other hand, the XRP is attempting to rally above $ 0.20 after a legal problem sent Ripple’s token into a free fall.
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