Rising yields limit USD losses as Democrats advance in Georgia

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This is what you need to know to trade today Tuesday, January 6:

It is considered that Democrats are the favorites to win both Senate elections in Georgia after most of the counting has been done. Prospects for fiscal stimulus are driving yields higher and providing some support for the dollar. Concerns about contagious covid variants and slow vaccination campaigns weigh on sentiment. The ADP jobs report and the Federal Reserve minutes are in focus.

Georgia: About 97% of the votes have been counted in the dual Senate races that determine Senate control with the remaining votes located in Democratic-leaning counties. Democrats need to win both seats to effectively lead the upper house and push through additional stimulus.

Republican Senator Kelly Loeffler is losing by about 40,000 votes to her Democratic rival Raphael Warnock. Republican Senator David Perdue leads Democrat Jon Ossof by just 700 votes, and analysts expect the race to tip toward Ossof once the count resumes in the United States morning. If this second run is within 0.5%, a count is performed.

The growing possibilities for stimulus have alienated investors from bonds, thus raising the yield on 10-year Treasuries above 1%. This increase offset the losses of the dollar as a safe haven.

President Donald Trump still trying to reverse his defeat ahead of Wednesday’s session of Congress, which is scheduled to ratify the victory of President-elect Joe Biden. Markets are ignoring the prospects for a disorganized event.

CoronavirusGermany extended its lockdown until the end of January amid stubbornly high number of cases and deaths. The European Medicines Agency (EMA) is set to approve Moderna’s vaccine on Wednesday. Governments across the continent are under pressure to accelerate the slow delivery of vaccines.

Covid strain: UK scientists are concerned that the South African variant may be more complex than the British variant and potentially resistant to the virus. Britain is under strict lockdown, reminiscent of spring.

See Coronavirus: Statistics, herd immunity, vaccination schedule and impact on financial and currency markets

Nonfarm payrolls of ADP show a modest increase in positions in December after reporting an increase of 307,000 in December. The post serves as a clue to Friday’s official labor report. ISM’s Manufacturing Purchasing Managers Index broke expectations with 60.7 points, pointing to solid growth in the industrial sector.

The Federal Reserve publishes the Minutes of the meeting of its last decision of 2020, which included the commitment to maintain the purchase of bonds at a high rate. Investors will try to find clues about the Fed’s next moves.

He crude petróleo WTI It is trading at around $ 50 after Saudi Arabia voluntarily agreed to cut its production by around a million barrels per day. Unilateral moves occur despite increased production from Russia and Kazakhstan.

He Bitcoin has passed the $ 35,000 level, a new all-time high. Ethereum is changing hands above $ 1,100, also climbing.

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