fbpx

Markets digest Georgia results

Markets digest Georgia results - MarketPulseMarketPulse

image

Home/Central banks/News events/Newsfeed/Non-farm payrolls/Treasuries/US election

Share 0

We’re seeing caution on the US open on Wednesday, as the final votes are counted in Georgia and the Democrats head for an unlikely double win.

The victory means the Senate is split, handing an effective majority to the Democrats who now control all three chambers. While that doesn’t mean life will now be easy for incoming President Joe Biden, it will certainly be far less prohibitive and enable the party to deliver on more of their campaign promises, albeit not without disruption along the way.

Stock markets are holding up fairly well considering this was seen as the least desirable outcome, given Biden’s promises on tax and regulation, in particular, but a big old stimulus may sweeten the deal. The Nasdaq isn’t having its finest start to the year, which isn’t surprising, but under the grand scheme of things, it’s doing fine.

What was a little surprising earlier in the session was that, despite the US 10-year yield rising above 1% in anticipation of another sizeable spending package, the dollar continued to struggle and gold was holding its ground. Although that has since shifted, with the dollar now slightly higher on the day and gold off almost one percent.

All things considered, this week is shaping up to be a big win for the Democrats, bringing an end to an election they should have done even better in. There’ll likely be more drama as President Trump refuses to accept defeat, along with a surprising number of allies in the House and Senate, but that shouldn’t have a bearing on events two weeks from today.

Attention will likely remain firmly on the US this week, with the Fed minutes this evening the next point of interest. The central bank played the waiting game in December and will be very pleased that Congress eventually decided to assist with some of the heavy lifting, although I’m sure it will be hoping more help will soon be on the way. The situation in the country continues to deteriorate though so it may still be a matter of when, rather than if.

The jobs report on Friday will naturally be another key area of interest, although with a stimulus package passed before the end of the year, it may not quite pack the same punch. Less than 100,000 jobs are expected to have been added – although today’s ADP suggests that may be very optimistic – while the unemployment rate is expected to tick higher, something we should see more off in the coming months.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.

Craig Erlam

Latest posts by Craig Erlam (see all)

Original author: Craig Erlam

Copyright

© MarketPulse

OPEC reaches deal, gold itchy
CryptoNews of the Week
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
26 January 2021
Australian dollar hovering at 77 line - MarketPulseMarketPulse Home/FX/News events/Newsfeed/Technical analysis Share 0 The Australian dollar has kicked off the new trading week with slight losses. Currently, AUD/USD is currently trading at 0.7700, do...
26 January 2021
Pound dips at start of week - MarketPulseMarketPulse Home/COVID-19/News events/Newsfeed Share 0 The British pound has started the week with slight losses. Currently, GBP/USD is trading at 1.3660, down 0.17% on the day. Sterling breaks 1.37 level It w...
26 January 2021
EUR/GBP - Inverse Head and Shoulders Forming? - MarketPulseMarketPulse Home/FX/Newsfeed/Technical analysis Share 0 It’s been a strong run for the pound after the UK avoided a no-deal Brexit that would have been a massive setback for the economy as it...
26 January 2021
Oil and gold pare early gains, bitcoin rebounds - MarketPulseMarketPulse Home/Central banks/Commodities/COVID-19/Earnings season/Metals/News events/Newsfeed/Oil Share 0 Oil Crude prices pared early gains from a double dose of bad news on the COVID fr...
26 January 2021
Tech climbs higher, retail traders win GameStop battle, COVID in focus, Chicago Fed, euro sinks - MarketPulseMarketPulse Home/COVID-19/News events/Newsfeed Share 0 This week is all about mega-cap earnings, but the early focus is falling on Biden’s ag...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.