The US dollar retreats
US dollar dips as inflation concerns ease
The US dollar headed south overnight, unable to hold onto recent gains as inflation fears temporarily subsided as the 30-year bond auction passed without incident, and a fall in US jobless claims turned attention back to recovery. The dollar index fell 0.44% to 91.45, although dollar short-covering has lifted it back to 91.55 in Asia.
EUR/USD negotiated the ECB meeting with aplomb, rising 0.45% to 1.980 overnight, and is seemingly out of the woods for now. A similar story has played out with GBP/USD and USD/JPY. The under-pressure Australian and New Zealand dollars also rallied overnight; both are testing their respective downside breakouts at 0.7805 and 0.7230 today. A close tonight above these levels by AUD/USD and NZD/USD will conclude their downward corrections for now.
Powell React: Fed dovish stance affirmed
January 14, 2021SharePrint
Powell sends a dovish message to markets
US stocks held onto miniscule gains following Fed Chair Powell’s dovish hold as investors await details of President-elect Biden’s stimulus package. Depending on how this plan is pieced will determine if this stimulus will get a fast track or have to go through the reconciliation process. The boosting of stimulus checks to USD2,000, expanding unemployment benefits and throwing everything at fighting COVID should receive much support from Republicans. The Blue Wave does not solve all as state and local aid assistance will still require 60 Senate votes.
Oil rally peters out, gold pares losses, bitcoin surges
January 14, 2021SharePrint
Oil runs out of steam
Crude’s steady ride higher appears to be running out of gas. Much of the rebound in oil prices has been vaccine optimism, bearish dollar bets that is boosting commodities across the board, and as the Saudis lead the charge to drain global oil stockpiles. Risky assets, including crude prices, are also benefiting from expectations the Biden administration’s looming stimulus package announcement is just the beginning of fiscal support that he will deliver.
Oil was unfazed from the latest OPEC monthly report that saw no changes in both the 2021 world oil supply and demand forecasts. World oil demand is forecasted to rise by 5.9 million bpd for a total of 95.9 million bpd. If J&J’s COVID vaccine gets the nod and has a successful rollout, that will help the second half of the year outlook for crude demand.
The sons of anarchy - MarketPulse marketpulse.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from marketpulse.com Daily Mail and Mail on Sunday newspapers.