Forex news for North American trading on January 21, 2021
- US' Fauci says it looks like COVID-19 might be plateauing
- US stocks close mixed. S&P and NASDAQ record closes. Dow down on the day
- Markets are, subconsciously or not, making these 3 bets - SocGen
- Pres. Biden: Addresses Covid 19 response
- WTI crude oil futures for March delivery settles at $53.13
- The Tel Aviv Trade is the key 2021 barometer
- Yellen says will work with Congress to improve retirement savings system
- Biden will push for tax increases "later in the year" - report
- Treas Sec nominee Yellen: Hope to work with Congress to avoid debt limit harm
- Bitcoin runs away from the 100/200 hour MAs
- European shares close lower on the day
- Eurozone advance Jan consumer confidence -15.5 vs -15.0 prior
- Lagarde Q&A: FX appreciation is a drag on inflation
- BOC's Macklem: Canada won't need as much QE over time under base case
- Canada ADP employment -28.8K in December
- ECB's Lagarde: Incoming data confirm previous near-term assessment
- Jan Philly Fed +26.5 vs +11.8 expected
- Initial jobless claims 900K vs 935K estimate
- US December housing starts 1669K vs 1560K expected
- ECB statement reveals slight compromise to the hawks but nothing more
- ECB leaves key rates unchanged in January monetary policy meeting decision
A snapshot of other markets into the close shows:
- Spot Gold, $-2.55 or -0.14% at 1869.30.
- Spot silver plus $0.11 or 0.44% at $25.95
- WTI crude oil futures for March delivery $-0.25 or -0.47% at $53.06
- Bitcoin fell $3235 or -9.26% to $31688
The ECB kept rates unchanged with ECB's Legarde saying:
- Uncertainty remains high
- Inflation remains very low
- Downside risks to short term outlook, but less pronounced
- Renewed infections and lockdowns are disrupting activity
- interest rates to remain at 0 until at least inflation 'robustly converges' to our target of close to, but below 2%
She more specifically quantified the pandemic period by saying:
- "Pandemic period" is until "at least March 2022"
- We will be present in the market until at least March 2022, at least
And added that the:
- FX appreciation is a drag on inflation
The EURUSD moved lower on the the FX appreciation comment, but could not sustain downward pressure after running into support its 200 hour MA at 1.2134 area. The price bounced higher into the close and trades near the session highs.
In the US fundamentally, the initial jobless claims did see a dip to 900K in claims for the week from a revised 926K (was 985K), but it is still 900K. Jobs remain a problem in the US especially in the service industry.
Housing starts and building permits on the other hand are booming with YoY starts up 27%. The Philly Fed index also spiked back higher to 26.5 vs 11.8 est. and 9.1 last month. Within the report, new orders and employment both rose sharply which contradicts and away the initial claims data at least in the Philadelphia area.
In the US Stock market today, the NASDAQ index continue to lead with a 0.55% gain. The S&P index eked out a small gain which was a new all time high close. The Dow industrial average closed marginally lower, ending its up streak and failing to make a new all time close.
In the forex, the GBP was the strongest of the majors followed by the EUR. The USD and JPY were the weakest.
The GBPUSD rose by 0.56% (USD down -0.56%). In the NY session, the price traded up and down after rising in the Asian session and early London session. The pair nevertheless it is closing nearer its highs for the day at 1.3745. The low in the New York session stalled just ahead of key swing support near 1.3700. In the new trading day stay above that level will keep the buyers in control.
