Dollar Continues the Sell-Off
The US index fell 0.11% lower on Monday, falling through the 91 level.
As a second economic stimulus package draws closer, sentiment could shift further as this would create more debt and likely weaken the value of the dollar.
Poor NFP numbers set the scene for Janet Yellen to argue for robust fiscal aid in order to expedite a return to full employment by 2022.
In addition, the Senate paves the way for the speedy trial of the ex-president today. The leaders agreed to a rapid timetable.
EU Vaccine Delays Bloc Recovery
The euro ended yesterday’s session mixed as vaccination worries hang over the Eurozone.
The European Central Bank has warned the EU’s economic recovery has been delayed amid growing anger over the sluggish roll-out of Covid-19 jabs.
The vaccination program is weeks behind schedule, with the hold-up expected to stunt economic growth.
With Britain dishing out vaccines almost five-times quicker, how much longer will the lockdowns go on for?
Sterling Reaches for Multi-Year Highs
The pound closed Monday’s session 0.15% higher as it firmly moved away from the 1.37 handle.
Sterling remains among the best performers against the greenback, supported by the latest monetary policy decision.
In addition, the number of new daily infections keeps decreasing, with the UK now vaccinating over 17% of its population.
With the current lockdown legislation ending on March 31, when will we see normality return?
Indices Hit Records Highs
Major US indices hit fresh all-time highs on Monday with the belief that new stimulus will help heat up the struggling economy.
The Dow advanced 0.76%, while the S&P500 rose 0.74%, with the Nasdaq adding 0.95%.
Joe Biden’s administration kept the pressure on Congress over his plan for $1.9tn in stimulus. If this aid does get injected into the system, is there anything stopping stocks to climb higher?
Gold Buoyed on Risk Sentiment
Gold extended its gains for a second consecutive session as prices continued to rebound from a recent drop to a two-month low.
The yellow metal closed 0.70% higher as it firmly moved away from the $1800 level.
It also found support from last week, after a weaker than expected jobs report halted the dollar rally.
However, with investors piling into stocks and other assets traditionally viewed as risky, a haven asset like gold could have limited upside potential.
WTI Goes Pre-Pandemic
Oil kept the rally going on Monday as it closed 1.7% higher, breaking the $58 barrier.
Optimism surrounding global vaccination progress, adding to the falling coronavirus cases continue to boost the black gold.
In addition, the ongoing flexibility and strong supply cuts from OPEC+ oil producers and Saudi Arabia have prevented prices from falling lower.