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Trump Supporters Storm US Capitol | Daily Articles | GKFX Prime

UK100 – Daily Candlesticks
Source: GKFX / MT4 (January 7, 2020)

UK100 is breaking higher and now back to levels last seen in the March sell-off after spending most of 2020 under the rebound high struck in June. 


•    Trump supporters storm US Capitol to protest ‘rigged’ election
•    Democratic Party takes control of US Senate
•    Bitcoin hits 36,000
•    Commodity forex pairs gain: AUD/USD rises to 0.78, NZD/USD 0.73
•    Nasdaq / FAANG stocks drop while Russell 2000 / small caps rally
•    Gold reverses sharply from November peak after Fed minutes
•    DAY AHEAD: China FX Reserves, Eurozone CPI, ISM Services


“I’d shoot for the moon but I’m too busy gazing at stars.” –Eminem


*Daily closing price
↗ EUR/USD    1.2339        (+0.36%)
↘ GBP/USD    1.3620        (-0.03%)
↗ USD/JPY    103.11        (+0.34%)
↗ S&P 500    3748.14    (+0.57%)
↗ Hang Seng    27,692.30    (+0.15%)
↘ Gold        1922.30    (-1.39%)
↗ Oil (Brent)    54.14        (+1.01%)
↗ Bitcoin    36,256        (+6.65%)



Wild in DC

The scenes in Washington DC were wild on Wednesday evening as protestors stormed the lightly-guarded US Capitol building. The disruption forced Senators and Congressmen and women to be escorted out of the Chamber and temporarily stopped them from certifying the election result for Joe Biden. A 6pm curfew was ordered across the US capital. 

Markets shrug

However, the reaction in markets was distinctly less wild which shrugged off the chaos on the streets. Democrats taking control of the Senate saw investors pursue trades than stand to benefit from greater government spending to assist the US economy. As such, small cap stocks gained at the expense of large cap tech stocks. The mere chance that Democrats would secure the Senate helped European indices finish near multi-month highs.

Commodity FX

As part of the same ‘reflation’ trade, the US dollar dropped while commodity currencies rose alongside oil and industrial metal prices. The Aussie dollar reached the 0.78 handle – a near 3-year high - while the Kiwi dollar hit 0.73. 

Gold sells off

The surge in gold prices ran into some resistance from the November peak as real yields gained ground following Fed minutes that showed US central bankers discussing the idea of tapering asset purchases in a similar manner to 2013. That tapering led to what later became known as the ‘taper tantrum’ when stock and bond markets plummeted for fear that stimulus was ending.


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