As the vaccination program continues at full speed, economies begin to recover, and people return
January 2020 marks a new day for the United States of America. A new administration is taking over following the last four years of Trump and Pence leading the country. The last months of Trump’s administration have been a turmoil. From bogus claims of voter fraud to hosting a speech that encouraged rioters to storm into the Capitol, causing the death of five.
Today Donald Trump acted differently. He displayed an unusual gesture of benevolence towards President-elect Joe Biden in his valediction address, “This week, we inaugurate a new administration and pray for its success in keeping America safe and prosperous. We extend our best wishes, and we also want them to have luck — a very important word.”
The farewell speech was the first time that Donald Trump acknowledged defeat since the November election. The President did not mention his successor’s name and did not accept responsibility for what happened at the Capitol. Instead, the President said, “All Americans were horrified by the assault on our Capitol,” Trump said. “Political violence is an attack on everything we cherish as Americans. It can never be tolerated.”
Donald Trump did hint at the possibility of taking power in the future, saying that “the movement we started is only just beginning.”
How did the markets react?
Following the US Treasure Secretary nominee’s announcement of more stimulus, the EUR/USD has been facing a bullish market. After the President-elect is inaugurated, all eyes will be on him during his first days at the office, which are bound to encourage a bullish market. FXStreet’s Analyst, Yohay Elam, commented the following:
“The focus is on what Biden does in his first hours and days at the White House. A call to wear face masks and a boost to America’s vaccination campaign would be welcomed while trying to force states to shutter would weigh on markets.”
“The European Central Bank is set to leave rates unchanged but may warn about the higher exchange rate of the euro. Without cutting rates, any attempt by the ECB to talk down the common currency will likely be futile. However, Bloomberg reported that the ECB could launch a strategy of controlling yield spreads. While lowering returns on European debt may weigh on the euro, it would lower borrowing costs for some governments, a positive development.”
“Germany extended its lockdown through February 14 while Italy’s government survived its political crisis. The common currency is somewhat dragged down by the slow pace of vaccinations, especially as Biden intends to ramp up America’s immunization scheme.”
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