A New World For The United States – President-elect Biden to Take Lead

A New World For The United States – President-elect Biden to Take Lead
TradeGM Analysis date_range January 22nd, 2021

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.”

“Resistance awaits at 1.2180, which capped EUR/USD last week. It is followed by 1.2225, which was the peak back then. Support awaits at the former triple bottom of 1.2125, then by the round 1.21.”

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The information presented does not involve any specific investment objectives, financial situation, and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.

The clients of eBrókerház Befektetési Szolgáltató Zrt. open orders through the Trade GM Trader Online Trading Platform, the orders will be forwarded to an execution venue defined in our Execution Policy. Trade GM Trader Online Platform is operated by eBrókerház Szolgáltató zrt, which is authorized and regulated by the Hungarian National Bank under the licence numbers III/73.059/2000. and III/73.059-4/2002.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The materials contained on this page are for advertising and marketing purposes only and should not in any way be construed, either explicitly or implicitly, directly or indirectly. as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument, in any manner whatsoever. You should make sure that you have sufficient time to manage your investments on an active basis. CDF are derivative financial instruments, which price is derived from the price of the underlying asset or contract to which the CFD refers (for example currencies, commodities, indices, equity, etc.). Derivative financial instruments and related markets can be highly volatile. The prices of CFDs and underlying instrument may fluctuate rapidly over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the client or eBrókerház Befektetési Szolgáltató Zrt. Prices quoted or information may vary and change depending on market conditions. When investing in Company’s Products denominated in a currency other than that of the state in which you reside, the return may increase or decrease as a result of currency fluctuations. Any indication of past performance or simulated past performance included in an advertisement is not a reliable indicator of future results. All names, pictures and personal details of people depicted as traders in advertisements concerning past performance are included for presentation purposes only, and are not the actual traders who have made the transaction detailed in the advertisement (actual details are kept for privacy purposes). All opinions expressed by traders are not actual testimonials but rather are depictive of the actual past performance and trading experience. Any trades depicted are selected from past real successful trades and are not reliable indicator of all customers past or future trades.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X