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Biden to give stimulus speech

Bitcoin – 1hr Candlesticks
Source: GKFX / MT4 (January 13, 2021)

BTC/USD has rebounded off support just above the 30,000 level and now broken through the 50% Fib retracement of the weekend/Monday decline. Next major resistance to overcome is the 61.8% Fib level at 37,500 – then 40,000.
 

TAKEAWAYS


•    Biden to announce new stimulus bill proposal today
•    Bitcoin retraces over half of weekend/Monday losses (see chart)
•    Dollar gains after solid rise in December US CPI stokes inflation bets
•    EUR/GBP reaches 7-week high as BOE dismisses negative rates
•    US stocks finished higher despite the 2nd impeachment vote of President Trump
•    Stocks in China paused for breath after CSI 300 13-year high
•    Lenovo stock jumps on news it will list in China
•    DAY AHEAD: China trade balance, Biden stimulus speech, Fed Chair Powell speech
 

GURU WISDOM


There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. – Jesse Livermore
 

MARKETS


*Daily closing price
↘ EUR/USD    1.2158        (-0.40%)
↘ GBP/USD    1.3668        (-0.14%)
↗ USD/JPY    103.11        (+0.11%)
↗ S&P 500    3700.65    (+0.23%)
↘ Hang Seng    27,472.81    (-0.15%)
↗ Gold        1941.88    (+1.49%)
↘ Oil (Brent)    55.94        (-0.12%)
↗ Bitcoin    19,137        (+9.78%)
 

NEWS

 

Biden speech


President-elect Biden will give details of his proposed coronavirus relief package today, with reports it could be worth over $1.3 trillion. The bill could include a $300 per month child tax credit Biden promised in his campaign. The larger the total value of the package, the better ‘reflation trades’ like oil, small cap stocks and possibly Bitcoin will likely do. A package worth less than $1 trillion could see some disappointment.
 

US CPI


Surging energy prices bolstered the December headline CPI figure for the US, helping the US dollar rise on the day. However, core CPI growth remained more contained with much of the service industry bogged down by the pandemic. The dollar is trying to stabilise above near-3-year lows hit last week.
 

EUR/GBP


Sterling hit a 7-week high over the euro as the currency pair continues to trend lower since the Brexit trade deal was agreed late last year. The pound has been supported by a dismissal of negative rates as a near-term option for the Bank of England by governor Andrew Bailey.
 

China stocks


Profit-taking at multi-year highs characterised the moves in China and Hong Kong exchanges on Wednesday but the jump in Chinese ADRs listed in America including Alibaba and Baidu could lift sentiment today. Reports now suggest Americans will not be banned from investing in the stocks. Meanwhile Lenovo stock popped on news it will list in China.
 

DAY AHEAD 


*Times in GMT
N/A – China Trade Balance USD (Dec) [$72.35 B Exp vs. $75.42 B Prev]
13:30 - US Initial Jobless Claims (Jan 8) [780K Exp vs. 787K Prev]
17:30 - Fed's Chair Powell speech
N/A - President-elect Biden stimulus plan speech
 

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