Markets Shrug Off Capitol Riot
JANUARY 07, 2021
The U.S. Dollar is trading in mostly familiar ranges following an eventful day in the U.S. that witnessed the Capitol Building get taken over by protestors who wanted to disrupt Congress as the certification of Joe Biden as President was taking place.
The optics of the whole scene are still fresh and being reacted to yet markets mostly ignored the proceedings as another wild day in Washington and moved on particularly motivated by chances of more stimulus from the government down the line. Biden was finally recognized officially overnight as Congress returned to finish its duties.
FX flows will likely take guidance from the risk-appetite out there as data does not seem to be too far from estimates. In the U.S., Initial Jobless Claims were just slightly lower than expected while in the Euro-zone November was confirmed as an awful time for Retail Sales and December a disappointment for inflationary growth. While the buck stayed in tight ranges throughout yesterday, the cryptocurrency market officially rose to $1.0 trillion in value with bitcoin rising to over $37K
What to Watch Today…
- No major events scheduled for today
The Euro is improving at the time of writing, benefiting from optimistic markets as well as data showing that the handling of the COVID-related lockdowns. Although November saw a flare-up in infections that forced measures, Germany still managed to impress with November Factory Orders coming in at 2.3% instead of the 0.5% expected. Meanwhile, confidence both in Economic and Industrial surveys was better than expected. We shall see how much more room Euro has to grow with more data coming in tomorrow in the form of Unemployment.
The Pound has been mostly flat and could remain without much action for the week as the increase in COVID infections is forcing many populated areas to have strict lockdown and curfew measures. Next week we will get a clearer picture of what economy the U.K. is coping within 2021 as we get a breakdown of November and December indicators.