Here is what you need to know on Monday, January 11:
The market mood has soured after US Nonfarm Payrolls showed the first job loss since last spring and the Federal Reserve is reluctant to act. The dollar is rising alongside Treasury yields. Coronavirus continues raging while vaccine distribution has yet to ramp up. Bitcoin and gold are on the back foot.
America’s labor market shed 140,000 positions in December, worse than expected, yet it was partially offset by upward revisions and an increase in wages. The highlight of this week’s economic calendar is US Retail Sales.
Richard Clarida, Vice-Chairman of the Federal Reserve, seemed reluctant to expand the bank’s bond-buying scheme. Fed officials seem to look through the current hardship and look toward the vaccine deployment and the recovery. His comments prompted further selling of bonds, boosting their yields and supporting the dollar. Fed Chair Jerome Powell is slated to speak on Thursday.
Gold, which rose in response to the “blue wave” is down as returns on US debt rise, licking its wounds below $1,844.
The greenback had already been on the rise beforehand, in response to Democrats won control of the Senate and are keen on providing generous stimulus to the economy. President-elect Joe Biden is set to lay out his economic agenda on Thursday.
Outgoing President Donald Trump is facing a potential second impeachment after his supporters stormed the Capitol last week. Twitter and Facebook permanently suspended Trump’s accounts, accusing him of inciting violence. The political drama in Washington has had little effect on markets.
COVID-19 infections, deaths, and hospitalizaitnos continue rising in the US and Europe. The UK is considering further restrictions as hospitals in London are under immense pressure. Governments are under growing pressure to ramp their vaccination campaigns, especially in continental Europe where immunizations reached less than 1% of the population.
Coronavirus: Statistics, herd immunity, vaccine calendar and impact on financial markets and currencies
Bitcoin has been suffering a sell-off, trading around $32,000 after nearing $42,000 last week. Ethereum is also off the highs.
Bitcoin Price Forecast 2021: BTC reaching new horizons, aiming for $100,000
The Fed’s Raphael Bostic and the BOE’s Silvana Tenreyro speak during the day.
Five factors moving the US dollar in 2021 and not necessarily to the downside
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