Tighter market under Biden-January 21,2021

Biden was sworn in as the 46th president of the United States on Wednesday, vowing to end the “uncivil war” in a deeply divided country reeling from a battered economy and a raging coronavirus pandemic that has killed more than 400,000 Americans. The new government is expected to push through Congress a nearly $2 trillion U.S. fiscal stimulus plan. Immediate resistance can be seen at 1.2137 (38.2%fib), an upside break can trigger rise towards 1.2194(21DMA).On the downside, immediate support is seen at 1.2092 (Daily low), a break below could take the pair towards  1.2057 (50% fib).

EUR/USD: The euro gained  on Wednesday as dollar fell as risk appetite held up on optimism about a massive stimulus package under the new Joe Biden administration that will likely bolster a U.S. economic recovery.

 

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GBP/USD: The pound rose against dollar on Wednesday as combination of heightened risk appetite in global markets and upbeat economic data lifted the pound. Inflation data for December showed that prices in the UK picked up by more than expected in December, to a 0.6% annual rate. 0.6.Inflation has been below the Bank of England’s 2% target since mid-2019 and the COVID-19 pandemic pushed it close to zero as the economy tanked. Immediate resistance can be seen at 1.3693 (23.6%fib), an upside break can trigger rise towards 1.3729(Higher BB).On the downside, immediate support is seen at 1.3608(38.2%fib), a break below could take the pair towards 1.3568(21DMA).

USD/CAD: The Canadian dollar strengthened to a near three-year high against its U.S. counterpart on Wednesday as the Bank of Canada opted against cutting interest rates and Wall Street scaled record highs . The S&P 500 notched an all-time high and the price of oil, one of Canadas major exports, rallied 1% as Joe Biden became the 46th U.S. president.The Canadian dollar rwas trading 0.7% higher at 1.2643 to the greenback, or 79.10 U.S. cents. The currency touched its strongest since April 2018 at 1.2606. Immediate resistance can be seen at 1.2636 (38.2%fib), an upside break can trigger rise towards 1.2665 (50%fib).On the downside, immediate support is seen at 1.2606 (23.6%fib), a break below could take the pair towards 1.2554 (Lower BB).

USD/JPY: The dollar dipped against the Japanese yen on Wednesday as investors weighed the likelihood of further U.S. stimulus under the new Biden administration against worsening coronavirus outbreaks in China and the United States.President Joe Biden, who was sworn into office on Wednesday, last week laid out a $1.9 trillion stimulus package proposal to boost the economy and speed up the distribution of vaccines. The dollar fell 0.4% against the yen to 103.54, sliding to a two-week low earlier in the session to 103.45. Strong resistance can be seen at 103.90 (38.2%fib), an upside break can trigger rise towards 104.19 (23.6%fib).On the downside, immediate support is seen at 103.66 (50%fib), a break below could take the pair towards 103.56 (21DMA).

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Equities Recap

Equities Recap

European stocks rose on Wednesday after Dutch chip equipment maker ASML and Swiss luxury group Richemont gave encouraging earnings updates.

UKs benchmark FTSE 100 closed up by 0.41%, Germanys Dax ended up  by 0.77% percent, France’s CAC finished the day up by 0.53 percent.

U.S. stocks closed at record highs on Wednesday as Joe Biden was sworn in as the 46th U.S. president, while solid results from Netflix sparked a rally in shares of “stay-at-home” beneficiaries.

Dow Jones closed up  by  0.83%% percent, S&P 500 closed by 1.39% percent, Nasdaq settled up 1.97%  percent.

Treasuries Recap

U.S. Treasury yields ended little changed on Wednesday after the inauguration of President Joe Biden, who has pledged to revive a battered U.S. economy with $1.9 trillion in stimulus, and as $24 billion of 20-year Treasury bonds were sold at auction.

Yields on the 20-year bond trended lower, trading toward the end of the session at 1.631%, compared to Tuesdays close of 1.64%.

Commodities Recap

Gold rose more than 1% on Wednesday on expectations that U.S. President Joe Bidens administration would increase stimulus measures to deal with the economic fallout of the coronavirus pandemic.

Spot gold was up 1.6% to $1,868.00 per ounce by 1:56 p.m. EST (1856 GMT), having touched more than a one-week high earlier. U.S. gold futures  settled up 1.4% at $1,866.50.

Oil edged higher on Wednesday on expectations that U.S. President Joe Biden’s administration will deliver hefty pandemic-related economic stimulus that will lift fuel demand and enact policies that will tighten crude supply.

Brent crude settled at $56.08 a barrel, gaining 18 cents. U.S. West Texas Intermediate (WTI) crude settled at $53.24 a barrel, climbing 26 cents.

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