Forex Today: Markets cheer Biden's first moves, ECB, jobless claims eyed


Here is what you need to know on Thursday, January 21:

Markets have positively greeted President Biden's first moves in office amid high hopes of fiscal stimulus. The ECB is set to follow the BOJ to leave rates unchanged. After Australia reported upbeat jobs figures, weekly US Unemployment Claims are eyed. 

President Joe Biden entered the White House and signed a long list of Executive Orders, such as canceling the Keystone XL pipeline – as expected and already priced into the loonie. The administration said it aimed to reach a bipartisan agreement on the covid relief plan worth $1.9 trillion. 

More President Joe Biden: The Markets And The First 100 Days

The S&P 500 Index reached new highs around the inauguration and is on course to continue higher on Thursday. The safe-haven US dollar is edging lower, especially against commodity currencies. Gold broke out of range and has topped $1870. 

Christine Lagarde, President of the European Central Bank, may issue a warning about the euro's high exchange rate in her first rate decision of the year. The ECB is set to leave its policy unchanged and discuss weak inflation, the current damage from the virus, and prospects for the rest of the year. 

See ECB Preview: Lagarde may trigger a “buy the dip” opportunity by trying to talk down the euro

GBP/USD has been trading around 1.37 as coronavirus deaths hit new highs in the UK, but cases are falling. 

The Bank of Japan stayed put as expected, marginally upgrading its growth forecast for fiscal 2021. 

USD/CAD is trading closer to 1.26 after the Bank of Canada upgraded its growth forecasts and hinted that it could taper its bond-buying scheme if the economy grows rapidly. WTI Crude Oil is stable at around $53.

Australia reported an increase of 50,000 positions in December, and the unemployment rate dropped to 6.6%, better than estimated. AUD/USD is advancing toward 0.78, underpinned by the weakening USD.

Top commodities to trade during 2021 amid global reflation theme: Silver and copper to outshine gold price

Apart from the ECB, the US jobless claims are of high interest after their disappointing leap last week. They are expected to retreat from near one million.

See US Initial Jobless Claims Preview: Waiting for the second recovery

Cryptocurrencies: Bitcoin has been on the back foot, sliding below $35,000. Ethereum is also struggling. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD jumps to three-week highs near 1.1650 amid falling dollar, yields

EUR/USD is trading close to 1.1650, recovering ground to clinch three-week highs. The pair cheers risk-on mood-led decline in the US dollar. Treasury yields pullback, as poor US industrial data tempers hawkish Fed’s expectations. Focus on ECB and Fedspeak.

EUR/USD News

GBP/USD advances towards 1.3800 amid risk-on mood, hawkish BOE

GBP/USD is advancing towards 1.3800, reaching the highest levels in five weeks. The greenback is losing ground amid a resurgent appetite for riskier assets. BOE's Bailey hinted at a rate hike to contain inflation. UK PM Johnson vowed to fix Brexit’s N. Ireland Protocol. 

GBP/USD News

Gold rebounds towards key $1795 barrier but downside risks remain intact

Gold price extended Friday’s sell-off on Monday to test the $1760 level but managed to recover some ground to settle the day around $1765. Lack of first-tier data to leave gold at the mercy of the dynamics in yield, USD.

Gold News

Litecoin on the cusp of 26% breakout

Litecoin price is on the penultimate leg of a technical formation that will catalyze a quick bull rally. LTC needs to clear one critical hurdle to kick-start a run-up to levels last seen more than a month ago. Litecoin price has been on a slow but steady uptrend since Oct 13.

Read more

Netflix Stock Price and Forecast: When are NFLX earnings?

Netflix stock falls nearly 1% on Friday ahead of earnings. NFLX releases earnings on Tuesday, October 19, after the close. Netflix stock has been boosted by the success of Squid Game.

Read more

Forex MAJORS

Cryptocurrencies

Signatures