The impending stimulus package from Joe Biden has helped boost sentiment for global markets today. Meanwhile, airlines are taking off given the reduced competition that comes with the Norwegian Air decision to cut long-haul routes.

  • Markets gain ground in anticipation of a Biden stimulus boost
  • Unemployment claims surge to four-month high
  • Airlines surge as Norwegian Air cut their long-haul routes


Global markets are on the rise as traders look ahead to the long awaited stimulus unveiling from Joe Biden. After months of stimulus-based volatility, today finally sees markets welcome a huge financial package that could top $1.5 trillion. With Biden taking office in less than a weeks’ time, the ongoing damage being dealt by the pandemic provide a critical moment for Biden step in and bring relief for businesses and consumers alike. With Trump having already managed to push through a $600 direct payment, we are looking at a possible further $1400 stimulus check which will likely drive up economic activity. Today’s sharp rise in unemployment claims has provided a timely reminder of the need to help provide financial support, with the initial jobless reading up to the highest figure in over four-months. Nevertheless, while traders have turned their attention to the positives of an impending stimulus package, it makes sense to expect volatility ahead as Trump supporters prepare for a host of armed protests ahead of Biden inauguration. 

Airlines are enjoying a welcome boost today, as the news that Norwegian Air is cancelling its long-haul routes ensures lower competition from one of the most aggressive firms in the industry. With Norwegian Air having driven down prices on key routes, their exit will allow competitors to both raise prices and increase their load factor. For now, the fact that Norwegian Air has decided to cut their service in such a dramatic fashion is acting as a positive rather than a warning sign for easyJet, IAG, and TUI shareholders. However, with Norwegian Air having cut their long-haul routes, and Delta Air having halved their cash burn in Q4, it is clear that the industry will need to batten down the hatches as global Covid restrictions continue to stifle revenues. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD rises above 1.21 amid better market mood

EUR/USD has been extending its gains, recapturing 1.21 as the market mood improves. The German ZEW Economic Sentiment beat estimates with 61.8 points. Treasury Secretary nominee Janet Yellen's testimony is awaited.

EUR/USD News

GBP/USD clings to 1.36 ahead of Yellen's testimony

GBP/USD is edging above 1.36 as markets eagerly Treasury Secretary nominee Janet Yellen's testimony. The UK parliament is set to process the Brexit deal as Britain ramps up its vaccination campaign.

GBP/USD News

Gold recovers further from multi-week lows, climbs to $1845 region

Gold gained positive traction for the second consecutive session on Tuesday. A modest USD pullback was seen as a key factor that benefitted the metal. The risk-on mood, rallying US bond yields might cap gains for the commodity.

Gold news

Breaking: Ethereum explodes to new yearly high, validating upward price action

Ethereum has ascended to new yearly highs after breaking the recent peak achieved in January. The flagship altcoin is trading at $1,372 amid the push for gains eyeing $1,400. 

Read more

US Dollar Index: Downside pressure alleviated above 91.00

DXY met sellers in the 91.00 neighbourhood on Monday and now retreats to the 90.50 region on turnaround Tuesday.

US Dollar Index News

Forex Majors

Cryptocurrencies

Signatures