Biden to give stimulus speech

GURU WISDOM

There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. – Jesse Livermore
 

MARKETS

*Daily closing price
↘ EUR/USD    1.2158        (-0.40%)
↘ GBP/USD    1.3668        (-0.14%)
↗ USD/JPY    103.11        (+0.11%)
↗ S&P 500    3700.65    (+0.23%)
↘ Hang Seng    27,472.81    (-0.15%)
↗ Gold        1941.88    (+1.49%)
↘ Oil (Brent)    55.94        (-0.12%)
↗ Bitcoin    19,137        (+9.78%)
 

NEWS

 

Biden speech

President-elect Biden will give details of his proposed coronavirus relief package today, with reports it could be worth over $1.3 trillion. The bill could include a $300 per month child tax credit Biden promised in his campaign. The larger the total value of the package, the better ‘reflation trades’ like oil, small cap stocks and possibly Bitcoin will likely do. A package worth less than $1 trillion could see some disappointment.
 

US CPI

Surging energy prices bolstered the December headline CPI figure for the US, helping the US dollar rise on the day. However, core CPI growth remained more contained with much of the service industry bogged down by the pandemic. The dollar is trying to stabilise above near-3-year lows hit last week.
 

EUR/GBP

Sterling hit a 7-week high over the euro as the currency pair continues to trend lower since the Brexit trade deal was agreed late last year. The pound has been supported by a dismissal of negative rates as a near-term option for the Bank of England by governor Andrew Bailey.
 

China stocks

Profit-taking at multi-year highs characterised the moves in China and Hong Kong exchanges on Wednesday but the jump in Chinese ADRs listed in America including Alibaba and Baidu could lift sentiment today. Reports now suggest Americans will not be banned from investing in the stocks. Meanwhile Lenovo stock popped on news it will list in China.
 

DAY AHEAD 

*Times in GMT
N/A – China Trade Balance USD (Dec) [$72.35 B Exp vs. $75.42 B Prev]
13:30 - US Initial Jobless Claims (Jan 8) [780K Exp vs. 787K Prev]
17:30 - Fed's Chair Powell speech
N/A - President-elect Biden stimulus plan speech