US equity markets rallied Tuesday as traders returned from the long weekend.
Tech stocks outperformed with the Nasdaq (NDX100) up more than 1.5% on the back of signs of mounting support for significant fiscal stimulus.
Reporting earnings tonight will be Procter & Gamble (PG.NYSE) and Morgan Stanley (MS.NYSE)
Source: Yahoo Finance
On the back of this the Aussie equity market has opened strongly currently the ASX 200 is up 0.6%
US dollar weakness returned overnight with comments from incoming Treasury Secretary Janet Yellen during her confirmation overnight.
Yellen advocated for major fiscal action to help support the virus-stricken economy, and told Congress to “act big” when it came to more aid. This alongside the Federal Reserve’s commitment to keeping monetary policy easy is creating a headwind for any US dollar strength
Overnight there are scheduled releases from both the Bank of England and Bank of Canada which could cause volatility in GBP and CAD crosses.
The weaker US dollar, as well as expectations that the large stimulus package incoming US Treasury Secretary Janet Yellen hinted at will support economic growth in the world’s largest economy pushed oil prices over 1% higher on Tuesday.
Also helped by US Dollar weakness Gold prices continued their bounce of recent support levels.
Source: GO MT4
Bitcoin had a relatively quiet night with the smallest daily range it has had so far this year.
It continues to consolidate in a tight wedge pattern, which technically could predict a sharp movement in either direction once the wedge is breached.
Source: GO MT4
|Thursday, 21 January 2021
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