This is what you need to know to trade today Thursday February 4:
US Treasury yields continue their bullish march amid hopes for a major stimulus package, driving the dollar higher and commodities lower. The effect of the vaccine news and upbeat US data is fading ahead of the BOE’s interest rate decision and US jobless claims.
Stimulus: Democrats have taken another step to pass President Joe Biden’s $ 1.9 trillion coronavirus aid package through a fast track. Talks continue with moderates from both parties and the final program could be less. Prospects for increased debt issuance and a booming economy have prompted a sell-off of bonds, boosting their yields.
High yields on US government debt have pushed the dollar higher, with EUR / USD closing in on 1.20 and GBP / USD falling below 1.36. Gold has been on the defensive, closing in on $ 1,800.
The American economy is doing well according to the latest figures. ADP’s jobs report showed a solid rise in jobs, while ISM’s service purchasing managers index also beat estimates. Both serve as clues to Friday’s Non-Farm Payroll numbers. Weekly jobless claims are projected to decline for the third week in a row.
See Forecasting Initial Unemployment Claims: Does Increase in Claims Herald Job Losses in January?
The American stock markets they remain relatively stable after a few days of rallies. Treasury Secretary Janet Yellen will meet with regulators to discuss the frenzy around “Reddit stocks” like GameStop.
The Bank of england he’s ready to leave his policy unchanged and release his Monetary Policy Report on “Super Thursday.” Governor Andrew Bailey will likely comment on the BOE’s review of negative interest rates, the outlook for the economy and Britain’s successful vaccination drive. The UK inoculated 10 million of its citizens.
See Bank of England Preview: Bailey to abandon negative rates, injecting new energy into the British pound
The EU will receive immunization doses of AstraZeneca over the weekend, allowing it to reactivate its vaccination campaign. Mario Draghi, former President of the European Central Bank, was given a mandate to try to form a new government.
Data from Israel, the world leader in the field of vaccination, shows a significant drop in hospitalizations and serious illnesses among those over 60, who were prioritized with vaccines.
The cryptocurrencies They have been spreading their gains above $ 38,000 on Bitcoin and with Ehtereum topping $ 1,600. Dogecoin is also of great interest.
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