Jobless Numbers Spike
The dollar had a choppy session on Thursday. However, it maintained its stance above the 90 threshold.
This comes after President-elect Joe Biden unveiled a $1.9tn stimulus plan for the US economy before he takes office.
The plan will come at a time of uncertainty for the job market, as weekly unemployment claims spiked far more than expected last week to reach a five-month high.
EURUSD has been retreating in response to the stimulus package, as it closed 0.14% lower.
Another Week, Another Variant
The pound kept the rally going as it closed 0.34% higher yesterday touching the 1.37 handle.
Recent confirmation from the BoE regarding a move away from negative rates has propped up sterling, whilst we await today’s GDP data.
Meanwhile, the UK will begin banning travelers from South America, amid concerns over a new variant that is sweeping the country.
Can the vaccination rollouts happen quickly enough to contain the virus?
Indexes React to Stimulus
US indices ended lower on Thursday after the Dow and Nasdaq both cut gains after touching record intraday levels.
Investors, economists, and political analysts will be looking ahead to Biden’s economic agenda later today.
The rallies are set to continue unless the upcoming fiscal aid is below expectations.
Gold Closes Mixed
Gold closed on an even keel yesterday as traders held off moving the yellow metal from its slumber.
Continuous coronavirus infections, civil unrest, and the impending US stimulus, combined with a slow rollout of vaccinations have kept gold consolidated.
The $1850 ceiling has weighed heavy on the metal, as we look ahead to next week’s inauguration.
Oil Jumps on Stimulus Bandwagon
WTI was another trade lifted by relief headlines, as it closed 1.65% higher on Thursday.
This comes despite new and extended lockdowns that promise to slow any oil demand rebound that was expected for 2021.
Also serving as a catalyst for rising prices are rumors of a tightening of supply, after Saudi Arabia’s move to pump less oil for February.