Big day in America today as Biden’s inauguration is hours away and Trump tries to squeeze out his last actions in favour of supporter interests. There’s a lot of caution being taken with regards to the inauguration as the military is camped out across the White House to prevent a relapse of the events that led to the protest action at the US Capitol.
Yesterday Yellen testified to Congress with statements resonating “Go Big” with regards to stimulus for Covid relieve that pushed a lot of postitive outlook into the US equity market as we saw Nasdaq, Dow, and S&P make significant gains, however a drop off on the US Dollar and Gold with a short-lived rally. We could have some follow through today with the open of the European and American markets.
Regardless of the change of administration taking the major focus this week there is still important data from other parts of the world that would impact the markets significantly. Canada has their monetary policy statements today with interest rates being expected to be kept at 0.25%. Bank of England Governor Bailey is set to speak and unemployment data coming out of Australia. There is also effect on JPY expected with the Japanese monetary policy statement being released.