Home Article Market News BIAS FOR EACH CURRENCY ON 21 JANUARY 2021

BIAS FOR EACH CURRENCY ON 21 JANUARY 2021

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🇺🇸 USD – BEARISH
1️⃣ General optimism the new Biden administration would boost fiscal spending to support the economic recovery.
2️⃣ Investors dumped the dollar as the prospect of a massive fiscal stimulus plan in the US boosted risk appetite.

🇬🇧 GBP – BULLISH
1️⃣ Pound benefitted by the UK’s progress in rolling out vaccines and a lessening of negative rates expectations after Bank of England Governor Andrew Bailey said last week that there were “lots of issues” with cutting rates below zero.
2️⃣ Britain’s inflation rate rose more than expected in December, but remained well below the Bank of England’s 2% target.

🇪🇺 EUR – BULLISH
1️⃣ Investors dumped the dollar as the prospect of a massive fiscal stimulus plan in the US boosted risk appetite.
2️⃣ ECB officials are expected to leave monetary policy unchanged after extending asset purchases last month and as the Euro Area remained in deflationary territory in December for a fifth straight month.

🇳🇿 NZD – BULLISH
1️⃣ The risk-sensitive Kiwi received a boost amid a smooth inauguration ceremony for US President Joe Biden.
2️⃣ Investors remain hopeful that the 78-year-old Democrat’s $1.9 trillion Covid-19 relief plan will support the economic recovery and bolster growth.

🇨🇦 CAD – BULLISH
1️⃣ The Bank of Canada left key rates at record low levels and pledged to continue supporting the economy with its QE programme of at least $4 billion per week.
2️⃣ Policymakers also painted a brighter outlook for 2022 due to vaccine rollout, fiscal stimulus, stronger foreign demand and higher commodity prices.

🇦🇺 AUD – BULLISH
1️⃣ Global risk-trends resumed after a smooth inauguration ceremony for US president Joe Biden, who has proposed that he will spend $1.9 trillion in a bid to help revive businesses that have suffered under lockdowns in order to limit the spread of the virus.
2️⃣ The seasonally adjusted unemployment rate fell to 6.6% in December, the lowest jobless rate since April, as the economy emerged gradually from the COVID-19 shocks

🇯🇵 JPY – BEARISH
1️⃣ The positive risk tone weighing on the safe-havens JPY.
2️⃣ The Bank of Japan said on Thursday that the Japanese economy is expected to shrink 5.6% in fiscal 2020 through March as Japan struggles to rein in coronavirus infections under a second state of emergency.

🇨🇭 CHF – BEARISH
1️⃣ The positive risk tone weighing on the safe-havens CHF.

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