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Yellen’s Encouragement Boosts Sentiment Ahead of Biden’s Inauguration, BoC and Bailey in Focus

This is what you need to know to trade today Wednesday, January 20:

The market mood is enthusiastic, with stocks and gold rising and the dollar retreating ahead of Biden’s inauguration. Yellen has advocated for more encouragement, boosting confidence. The BoC is ready to leave rates unchanged and the BOE Governor is ready to speak. The coronavirus continues to ravage.

The candidate for Secretary of the Treasury, Janet Yellen, appeared before the Senate Finance Committee for its confirmation hearings and urged lawmakers to “act big.” The former Chairman of the Federal Reserve dismissed concerns about debt and supported a market-determined exchange rate for the dollar, deviating from the “strong dollar” policy. Optimism on stimulus has been applauded by markets, weighing on the dollar as a safe haven.

The President-elect Joe Biden takes office at 17.00 GMT and your first actions in office will be closely watched by the markets. In addition to promoting the $ 1.9 trillion aid package, investors are expecting significant action related to the environment or infrastructure.

He Bank of Canada it will leave its interest rate unchanged in the first such event in 2021. The USD / CAD has been moving around 1.27, with the Canadian dollar rebounding from Biden’s plan to cancel the Keystone XL pipeline. Before the BoC, Canada publishes inflation figures for December.

See Preview of the Bank of Canada’s interest rate decision: No rate changes anticipated

Andrew Bailey, Governor of the Bank of England, will speak later in the day and may shed light on the current state of the economy. UK inflation rose 0.6% in 2020, slightly above expectations. COVID-19 cases are declining in Britain, but the government insists on maintaining the lockdown until more people are vaccinated.

Deaths by coronavirus en EE.UU. they have passed the grim milestone of 400,000. The silver lining is that the pressure on California hospitals is easing.

EuropeGermany extended its lockdown until February 14 and other European countries are also considering extending their restrictions. Italian Prime Minister Giuseppe Conte survived a vote of no confidence in the Senate, allowing the government to continue.

Cryptocurrencies: Ethereum is holding most of its gains after hitting an all-time high of $ 1,440 on Tuesday. Bitcoin is hovering around $ 35,000, below the highs.

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