Democrats Look To Oust President

By Orbex

Greenback Attempts Pullback

The dollar index ended 0.52% higher on Monday, pulling firmly away from the 90 handle.

Investors started to price in more stimulus once Joe Biden officially becomes the next President, after disappointing job numbers last week.

As the political turmoil rages on, the Democratic party started a new impeachment bid to remove Trump from office.

FBI officials have warned the public over continuous protests. With just over a week to go before Biden’s inauguration, will any more drama unfold?

Euro Diminishes as the Sell-Off Begins

The euro fell for a third straight session in a row, as it eventually ended 0.54% lower.

Optimism surrounding further stimulus boosted the greenback over the euro, whilst the rising number of new infections, and the appearance of new strains of the coronavirus weighed on economic growth prospects.

The 1.21 handle seems to be the next target for the currency pair, as Italy and Spain face warnings over their crippling debt.

Sterling Keeps Tumbling

The pound was another casualty of a strengthening dollar, closing 0.38% lower and breaking the 1.35 level.

Reports confirmed that UK retail sales were the worst on record, as sentiment took a battering.

Chancellor Sunak confirmed that the economy will get worse before it gets better, as the new national restrictions appear to have no end in sight.

Fiscal stimulus provided so far has amounted to more than £280bn, but will this be enough to keep employees furloughed for the foreseeable future?

Indices Fall from Record Highs

Stock markets retreated yesterday after a sustained rise to successive records last week. This came against a backdrop of rising coronavirus cases and US political turmoil.

All three major US indices pulled back, and tech shares also felt the fallout after social media platforms pulled the plug on President Trump.

The sell-off was evident as Apple, Facebook, Amazon, Google, and Twitter all fell by over 2%.

Bears Wake from Winter Slumber

Gold closed 0.35% down on Monday as it grasped for support underneath the $1900 level.

As the greenback continues to pull back, gold prices continue to be hit hard. Risk appetite shifted once again as prices try to reverse Friday’s dramatic $66 decline.

WTI Settles Above $52

Oil closed 076% lower on Monday but managed to maintain an upward bias above the $52 handle.

The short dip was viewed on rising pandemic cases as API and EIA data await investors this week.

In addition, China reported the largest one day increase in confirmed Covid-19 cases since July, adding additional weight on oil prices.

By Orbex