Democrats Seek Trump Removal

January 8, 2021

Greenback Enjoys its Best Day this Year

The dollar index reacted to the victory in Georgia for the Democrats as it closed 0.52% higher on Thursday.

The immediate impact is that the new administration will unveil a large stimulus package which generally would be negative for the dollar. However, it could also help speed up the recovery, which could force the Federal Reserve to hike interest rates.

In addition to yesterday’s riots, lawmakers have pressured Trump to leave the White House before Biden’s inauguration in less than 2 weeks.

Bulls will now be looking for the 93 handle as we await the first NFP data for 2021.

WHO Urges Tighter Restrictions

The euro closed 0.44% lower yesterday as it failed to hold on to the 1.23 barrier.

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The World Health Organisation’s European director stated that 22 of the bloc’s countries had cases of the new Covid-19 variant, which is an alarming situation.

This can only lead to one thing, further lockdowns and stricter measures.

With more vaccinations being certified, will the rollouts happen quickly and effectively enough before another wave occurs?

No End in Sight for UK Lockdowns

The pound slipped 0.32% lower on Thursday as it crashed through the 1.36 ceiling.

Prime Minister Johnson gave another televised address stating the reasoning behind further restrictions but gave no clues as to when normality will return.

This comes as problems grow at UK ports with backlogs and delays, as new trade barriers are imposed after last month’s trade deal with the EU.

Indexes Close at New Records

Stocks were upbeat yesterday as congress confirmed President-elect Joe Biden’s election win, offering the prospect of more fiscal aid.

The Nasdaq was the front runner, as it closed 2% higher.

Investors will now focus on the prospect of a more aggressive fiscal agenda under a new Biden administration, as the clock counts down to the inauguration date.

Gold Keeps Slipping

Gold closed 0.27% lower on Thursday as risk-on sentiment remained.

Some economists declared that the big push for the yellow metal is well and truly behind us, as further vaccination rollouts will weigh heavy on the price.

However, depending on the speed and effectiveness of the vacciness, could we see another push to $2,000 anytime soon?

Oil Shifts Past $51

Prices of WTI surpassed the $51 mark during yesterday’s session.

The rally came after the recent announcement by Saudi Arabia, the world’s largest oil export, to cut its domestic production by around 1 million bpd for the next two months.

With vaccination optimism in full swing, how long will this rally continue for?

By Orbex