View Single Post
  #440  
Old 18-01-2021, 13:44
KostiaFM's Avatar
KostiaFM KostiaFM is offline
Level V Lasers Member
 
Join Date: Mar 2019
Posts: 680
Default Re: Daily Market Analysis by ForexMart

EUR/USD. January 18, 2021 Euro continues to decline

The euro continues to decline against the dollar on Monday, reaching 1.2060. Weak economic statistics from the US, as well as uncertainty in the timing of the discussion of Joe Biden's stimulus program put pressure on risky assets.

It is noted that the package of measures to support the economy proposed by Biden includes direct payments to Americans in the amount of $1,400, a temporary increase in payments to the unemployed, and an increase in the minimum wage at the federal level to $15 per hour. However, experts believe that the new president will not be able to pass the stimulus plan in this form through Congress.

This week, all the attention of the markets will be drawn to the speech in the Senate of the former chairman of the Federal Reserve System Janet Yellen on Tuesday. Market participants expect that the country's new finance minister will make it clear that they are taking an approach in which the dollar should be determined by the market. This will mean that the Ministry of Finance does not intend to interfere with the dynamics of the national currency.

Today is a day off in the United States to celebrate Martin Luther King Day, so the pair will continue to trade weakly around 1.2080.

Brent. January 18, 2021 The oil market continues to decline on Monday

On Monday, oil prices continued to decline, reaching $54.50 per barrel. Such dynamics was a consequence of the strengthening of the US dollar, as well as a decrease in traders' optimism amid an increase in the incidence of Covid in the world. However, statistics from China, showing GDP growth of 2.3% (more than forecast) and an increase in industrial production in December by 7.3%, limit the decline in oil prices today.

Experts note that the oil market has grown strongly lately, and the current decline is giving it some respite. The key event for the market in the near future will be the inauguration of the US President-elect Joe Biden and his further economic program.

Brent was also under pressure at the end of last week with data from the American oil service company Baker Hughes. The report reflected an increase in the number of operating oil rigs in the US last week by 12 units to 287 rigs. The number of work units has been increasing for eight consecutive weeks.

The current Brent quote is $54.80. During the day, we expect a slight recovery in the price to the $55 per barrel area.
Reply With Quote