Joe Biden was inaugurated as the 46th President of the United States overnight in a peaceful ceremony. Wall Street rallied to new record highs to begin the new administration, with ongoing support from the prospects for massive additional stimulus. GER30 and UK100 futures are up 0.3% and 0.4% respectively, alongside broad gains in US futures. The tech heavy USA100 continues to outperform after already rallying yesterday. Meanwhile, helping the yields market recover from the 2021 selloff has been the Fed's commitment to low rates, with the long end supported by expectations the FOMC will adjust QE purchases to cap rates, while foreign demand and dip buyers are also expected to limit selloffs.
Today: All eyes will be on ECB at 12:45 and 13:30 GMT. The data calendar meanwhile focuses on US Jobless claims New Zealand and Japan inflation data.
Biggest (FX) Mover – NZDUSD ( +0.40% as of 07:58 GMT) – The asset broke 20-DMA, regaining nearly 50% of losses seen since December 2020.
#HotForex #HFAnalysis #forex
