News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • (Weekly Fundamental) Australian Dollar Outlook: Tied to Biden Stimulus Bets, S&P 500, US Dollar, Treasuries $AUDUSD #SP500 #stimulusbill #USD https://www.dailyfx.com/forex/fundamental/forecast/weekly/aud/2021/01/16/Australian-Dollar-Outlook-Tied-to-Biden-Stimulus-Bets-SP-500-US-Dollar-Treasuries.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/H7aus0Aljt
  • The inside bar pattern occurs regularly within financial markets. Incorporating the inside bar strategy can enhance a trader's market analysis. Find out how more here: https://t.co/E3EWOYTYNw https://t.co/7zI3p6UNVs
  • Bank of Japan to mull widening of its long-term yield band -BBG $USDJPY
  • While the rise in longer-dated Treasury yields have been impressive as of late, March highs remain a key focus for resistance The medium-term uptrend remains intact, maintained by rising support from August Fading fiscal stimulus expectations (size) may sour yields ahead https://t.co/L3vBcF0ts7
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/vFJ8zmphMm
  • While the US Dollar has been holding its ground, its downside bias against the Singapore Dollar, New Taiwan Dollar Thai Baht and Indonesian Rupiah remains intact as it hovers at support. Get your market update from @ddubrovskyFX here: https://t.co/p7gAztWuVG https://t.co/zB1pOS6U4D
  • The $VIX is now running 227 trading days above the 20 handle. It is also working its way quickly into a dead-end descending triangle. These don't really break lower... https://t.co/39Pr7YrQ08
  • WTI Crude amongst the many market participants taking a hit today, down almost 3% $WTI $USD https://t.co/eg2phm1wUO
  • The power of suggestion: even though the market recognized the mistake with mixing Tesla founder Musk's suggestion to use the Signal app with the stock SIGL, it is still trading >2,000% above pre-remark levels and maintains heavy volume. Us speculators are an interesting people
  • Forex Update: As of 21:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.07% 🇨🇭CHF: -0.35% 🇪🇺EUR: -0.65% 🇨🇦CAD: -0.75% 🇦🇺AUD: -0.95% 🇳🇿NZD: -1.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6NZVebT00L
What To Expect From Biden's Stimulus Package Announcement - US Market Open

What To Expect From Biden's Stimulus Package Announcement - US Market Open

2021-01-14 14:15:00
Justin McQueen, Analyst

USD, EUR/USD Analysis & News

  • Equities Tracking Higher Ahead of Biden Announcement
  • Euro Edges Lower, However, Italian Political Risks are Fairly Muted
  • Powell to Stick to Script and Downplay Taper Talk

QUICK TAKE: Markets Eyes Powell and Biden’s Stimulus Package Announcement

Equities: European bourses posting modest gains ahead of Biden’s stimulus announcement. Reports overnight stated that the stimulus plan could be around the region of $2trillion, which is some $700bln more than what had been touted by Senate Democrat Leader Schumer.

Euro Stoxx 50 Sector BreakdownOutperformers: IT (+1.3%), Healthcare (+1.2%), Consumer Discretionary (+1%)Laggards:, Financials (-0.7%), Utilities (-0.6%), Real Estate (-0.5%)

US Futures: S&P 500 (+0.2%), DJIA (+0.35%), Nasdaq 100 (+0.03%)

Intra-Day FX Performance

What To Expect From Biden's Stimulus Package Announcement - US Market Open

FX: The Euro is slightly underperforming as Italian political risks begin to rise after former PM Renzi pulled his party out of the ruling coalition. However, BTP-Bund 10yr spreads are marginally wider, the spillover into FX has been limited thus far. That said, focus will be on a cabinet reshuffle. Elsewhere, FX markets have largely remained directionless with GBP/USD struggling to hold above 1.37, while USD/JPY remains anchored at 104.00.

EUR Forecast
EUR Forecast
Recommended by Justin McQueen
Download our fresh Q1 2021EUR Forecast
Get My Guide

Fed Chair Powell is scheduled to speak from 17:30GMT, however, given the plethora of Fed speakers already pushing back against taper talks that had been sparked by Bostic. Powell will likely stick to the current mantra in that QE purchases will remain unchanged for quite some time.

What To Expect From Biden's Stimulus Package Announcement - US Market Open

What to Expect from Biden’s Stimulus Package?

President-Elect Biden is expected to announce a major COVD-19 relief package from 00:00GMT with people familiar with the matter suggesting that the package is around $2trillion. The relief measures are expected to include large direct payments ($2000 stimulus checks), sizeable state and local funding, as well as vaccine distribution and emergency spending provisions, according to CNN.

With Democrats controlling the Senate, Biden and Harris will first offer negotiations in an attempt to reach bipartisan support for fiscal policies. However, with only 50 Democratic senators (and a tie-breaker vote for VP-Elect Harris), 10 Republican Senators would be needed to overcome the Senate filibuster, where a bill would typically require 60 votes to move forward, thus making a bipartisan approach very unlikely. As such, fiscal stimulus will be through the process of Reconciliation. Although, even with a thin majority, moderates such as Democrat Senator Manchin will need convincing.

Market response will likely be felt most in US fixed income, which has been the case since Georgia state runoff elections. As markets repriced a blue wave, yields rose amid expectations of more deficit spending, resulting in higher issuance of treasuries. As such, the bond market will be closely watched throughout Biden’s speech.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES