EURUSD continues growing. Overview for 20.01.2021
EURUSD is trying to keep its positive momentum; the “greenback” is retreating in anticipation of a new stimulus package.
The major currency pair continues moving upwards and doesn’t seem to turn around. The current quote for the instrument is 1.2140.
Capital markets are moving against the USD in anticipation of a new enormous stimulus package from the White House to support the American economy. It’s not the first week this topic is being discussed – there were a lot of words about the advantages of the package and it looked like the USD enthusiasts accepted them. However, right now, when the package is just several days away, emotions are moving to the front burner again. And it’s not the last time we see these emotions – one сan be absolutely sure they will return at the time of launching the package.
The former Chairwoman of the US Federal Reserve Janet Yellen said yesterday that China was “playing with loaded dice” in its relations with the USA. According to Yellen, the USA had to stand against economic and trade pressure from Beijing. In addition to that, Yellen said she was worried about the US budget and couldn’t be sure about the stability of the national debt. All these factors are a result of Donald Trump’s program. However, there is one thing, in which she is stable as a politician: her priorities imply helping people during the pandemic, investing in ecologically friendly technologies and infrastructure, which are intended to help the country’s population in the future.
Yellen believes that the Dollar rate should be regulated by market factors only. As for interest rates, they should remain low as long as they have to.
It seems like Biden’s office has already decided and the question “What can Janet Yellen do as the US Federal Reserve Chairwoman?” is not even discussed right now. If Yellen focuses on the labor market and how to support it, it will be a win and good news for the USD.