This is what you need to know to trade today Thursday 25 February:
Stock markets have returned to “risk appetite” after Fed Chairman Jerome Powell reiterated his support for the economy. The rise in equities and the US dollar decline come despite new highs in US yields. Bitcoin continues to fight around $ 50,000 and GameStop has soared again. US GDP, durable goods orders and initial jobless claims will be the focus of attention.
Jerome PowellChairman of the Federal Reserve, dismissed inflation fears also in his second testimony, hoping only to hit the bank’s 2% target in three years. The most powerful central banker in the world noted that ten million Americans are out of work.
Powell’s words were joined by upbeat news on the vaccine front. US FDA Cleared Johnson and Johnson’s Single-Dose COVID-19 Immunization, and a widespread study in Israel showed that the Pfizer / BioNTech vaccine reduces infection by 94%. The S&P 500, NASDAQ and Dow Jones indices rose, with the latter hitting all-time highs.
Yields on US Ten-Year Bonds They exceeded the 1.40% level, but the dollar remains on the defensive. Currencies pegged to commodity prices are moving fast, with AUD / USD targeting 0.80 and USD / CAD flirting with 1.25. WTI crude oil is around $ 63. On the other hand, gold is having a hard time moving forward, trading below $ 1,800.
A large number of US economic indicators expects investors on Thursday. Economists expect gross domestic product GDP for the fourth quarter of 2020 to update higher from the initial reading of 4% annualized. Durable goods orders also have expectations of healthy increases, while weekly jobless claims are forecast to decline after last week’s disappointing jump.
See: Preview of Initial US Unemployment Claims: One-off Layoffs Going Mundane
See: Preview of Initial US Unemployment Claims: One-off Layoffs Going Mundane
The Bitcoin It continues to fight the $ 50,000 level, but volatility has subsided a bit after moves above $ 12,000 earlier in the week. Ethereum and XRP are also somewhat calmer.
GameStop has returned to public attention after shares in the veteran video game company doubled following the departure of the chief financial officer. There may be another little squeeze going on in GME and other “Reddit” stocks as well.
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