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  • Greenback strikes back as U.S. debt recovers glamourous shine

Greenback strikes back as U.S. debt recovers glamourous shine

The start of the second trading week of 2021 became nervous as some difficulties in approval of new Biden’s multitrillion-stimulus plan emerged in the U.S. Senate. The impeachment plan endorsed by Democrats became a sticking point in the bipartisan government that may finally cause a quarrel between two parties.

Moreover, stocks of the leading social networks like Twitter and Facebook fell under pressure after a ban on the sitting U.S. President Donald Trump accounts at least for his remainder in the White House after accusation of encouraging insurrection made by the President. Twitter and Facebook shares immediately plunged by 9% and 2.5% respectively.

However, overall market sentiment is still moderately positive. German DAX lost just 0.8% on Monday, while British FTSE closed slightly lower, by 1.09%. U.S. stock indices were stronger posting just marginal losses ahead of inflation data, start of the banking reporting season and the statement of the Federal Reserve chair Jerome Powell later this week.

Most likely, the optimism will dominate stock markets this week following S&P 500 as a guiding star on its way to new paramount highs at 4000 points.

Crude market is unlikely to be lagging behind. Brent crude benchmark may hit $58-59 per barrel, but would like to run out of steam to perform new highs as the deficit of crude globally is seen unlikely considering the continuous second wave of coronavirus spread.

Gold prices are seen in unfavorable swing as the yields for U.S. 10-year benchmarks Treasuries rocketed above 1.1% making them an attractive alternative to the bouillon. So, we may see a further decline in gold prices after trading sideways in the range of $1840-1880 per troy ounce. The nearest target is located within the area of $1650-1700 per troy ounce.

Forex market is following U.S. debt. U.S. Dollar is gaining strength with the rising Treasuries’ yields. The EUR/USD is strongly gravitating to the 1.2000 level and GBP/USD may fall to the 1.3200. The Greenback may rise vs the Japanese Yen to 105.50.