Some key event for Forex market:
1.Preparations are ready for the inaugural ceremony of Joe Biden and Kamala Harris.(source:https://www.theguardian.com/us-news/live/2021/jan/20/joe-biden-inauguration-donald-trump-impeachment-kamala-harris-washington-covid-coronavirus-live-updates)
Live streaming of Biden Inauguration :https://abcnews.go.com/Live/video/abcnews-live-41463246
Joe Biden will become the 46th president of the United States on Wednesday, having defeated Donald Trump.
U.S. Futures Higher Ahead of Biden Inauguration
2.Dollar Weakens as Yellen Boosts Risk Appetite:The dollar weakened in early European trade Wednesday, with risk sentiment on the rise after comments Janet Yellen, Joe Biden’s nominee for Treasury Secretary, pointed towards substantial additional fiscal spending t reflate the U.S. economy.(source:https://www.investing.com/news/forex-news/dollar-weakens-as-yellen-boosts-risk-appetite-2393494)
3.ECB Meeting on Thursday:
The European Central Bank’s latest rate-setting meeting on Thursday looms large, but changes to its monetary policy are unlikely given it delivered a hefty easing package only in December.
“The focus of Thursday’s ECB meeting will be on [President Christine] Lagarde’s comments on the future of bond purchases and the difference of opinion between hawks and doves,” said Nordea analyst Jan von Gerich.
BRUSSELS (Reuters) – The European Commission said on Tuesday it would seek to boost the international role of the euro and build European financial infrastructure so that the EU becomes more independent of outside financial centres and the dominance of the U.S. dollar.
The initiative, which is an announcement of a long-term strategic direction rather than a action plan, follows Britain’s EU departure, which took Europe’s biggest financial hub — the City of London — outside the EU’s jurisdiction.
“With the withdrawal of the UK from the EU, there is a strong need and opportunity to develop domestic market infrastructures,” the Commission said in a paper addressed to EU governments, the EU parliament and the European Central Bank.(investing.com)
Some market analysis for biden’s policy :
Here is a sampling of some policy moves to look out for, and the potential assets that could be affected:
- More fiscal stimulus
President-elect Biden has already unveiled a $1.9 trillion stimulus plan, with potentially more to come. His nominee for US Treasury Secretary, Janet Yellen, told the Senate on Tuesday that the economic rescue package is the immediate priority, and cited the need to “act big”.
WATCHLIST: US Stocks, Dollar, Gold
- Higher taxes and regulations
Given the more pressing concerns surrounding the US economic recovery, there is less of an imminent risk that the Biden administration would push through traditionally Democrat-favoured policies such as tax hikes and heightened regulations. Still, that isn’t stopping investors from already trying to ascertain the likelihood and the potential timeline for such an agenda to eventually force its way through sometime over the next 4 years.
WATCHLIST: Banking stocks, Big Tech
- Persisting US-China trade tensions
Yellen used strong words when addressing US-China relations moving forward, dashing hopes that there could be a major reset in ties between the world’s two largest economies under the new POTUS. At least investors can bid adieu to Trump’s policy-by-tweets that shook global markets at unpredictable intervals, and also perhaps to the in-your-face nature of the trade war that the world had grown so accustomed to in recent years.
WATCHLIST: Chinese Yuan, Asian stocks
- Green agenda to the fore
During the presidential debates, then-Democratic presidential candidate Biden already made his ambitions known to “transition” America away from its dependence on Oil. The green agenda may be made clear on day one of the Biden administration, with the incoming POTUS reportedly set to cancel the Keystone XL Pipeline which moves oil across the US-Canada border.
WATCHLIST: US crude, Big Oil, Tesla, FXTM Green index
(source:https://www.forextime.com/market-analysis/will-bidens-presidential-inauguration-affect-markets-today)
Warning:Forex and stock is high risk ,don’t invest without your own analysis,this article is for education knowledged based only.
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