Open: London Session | Forex, Metals, Oil, Agriculture January 21, 2021



Although none of that seemed to matter for Japanese Yen traders, who drove the currency higher versus the euro and U.S. dollar. The euro edges up against the dollar this morning. In data we’ll get euro area consumer confidence and U.S. housing starts. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Meanwhile, the Canadian dollar was the day’s best-performing currency.
The big question is whether ECB President Christine Lagarde will jawbone the euro.

United States

Thus, by buying assets the Fed adds to the monetary liquidity, thereby lowering rates, while by selling assets the exact opposite is taking place. Biden, meanwhile, started his tenure vowing to end the “uncivil war” he says Donald Trump spurred, though he added his predecessor also left him a “very generous” letter. While asset buying by the US Fed raises the money supply, its selling of assets produces the opposite effect. Mr. Barr would succeed Brian Brooks, who stepped down last week after about eight months as the Trump administration’s acting comptroller.
The new president signed executive actions to reverse withdrawals from the Paris Climate Agreement and the World Health Organization, and stop construction of Trump’s infamous border wall. Equity and currency traders welcomed the new administration with fresh records for the S&P 500 and NASDAQ. This is attained, so it is held, by means of influencing the short-term interest rate, in the US the federal funds rate.


Any significant hitch in the U.S. could also lead to embarrassing and politically damaging comparisons with Europe:Both the U.S. and the EU also have to contend with geographical differences. These are just some of the questions EU leaders will weigh during a video summit today. The EU will lag behind, but might catch the U.S. by the end of the year. A virus anniversary, ECB decision day and Biden’s first actions. No one expects the ECB to boost asset purchases, having just done so in December.
The ECB will take all of this into consideration when it meets tomorrow. Merkel successor has explaining to do.