empty
 
 
You are about to leave
www.instaforex.eu >
a website operated by
INSTANT TRADING EU LTD
Open Account

13.01.202110:20 Forex Analysis & Reviews: Markets are consolidating while waiting for Biden's inauguration and the start of corporate reporting season

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

Following the chaotic events during the start of the month, investors' activity began to slowly decline in the middle of the month, which is demonstrated in the consolidation of stock indices and uncertain dynamics in the currency markets.

Currency markets are in between the state of uncertainty and expectation again. However, the uncertainty factor is still unchanged. Investors already understand that the dynamics of COVID-19 remains uncontrollable, despite the start of the production of vaccines against it and the actual vaccination process and hence, the lockdowns in Europe, and records for cases and deaths in America. The impact of this factor remains significant, as it greatly influences the economies of Western countries and the entire world.

In turn, the expectation factor still remains generally positive. Investors hope that the first and second quarter this year will be much better than the disastrous 4th quarter last year. In addition, the market's focus remains the topic of the additional incentive measures from the J. Biden's administration after his inauguration. However, if you carefully observe the overall outlook of the impact of support measures, they have practically lost all their effectiveness and only contribute to inflating financial bubbles that will surely burst. At the same time, their attention is also focused on the beginning of corporate reporting of companies, which will affect the demand for company shares, and through this, the overall view on the markets, including the currency market.

Analyzing all the events, we believe that the general consolidation period in the markets will most likely continue this week.

In terms of today's economic calendar, the focus will be on the publication of the values of US consumer inflation. Its growth in consumer inflation both in monthly and annual terms, respectively by 0.4% against 0.2% and 1.3% against 1.2%, may provide local support to the dollar, which might negatively affect the dynamics of stock indices.

Forecast of the day:

The EUR/USD pair may decline if US inflation data shows growth. In this case, it may quickly move to the recent low of 1.2140 without breaking the level of 1.2220.

The USD/CAD pair may rise to the level of 1.2800, after breaking through the 1.2720 in the wake of the US dollar's growth due to rising inflationary pressures.

Exchange Rates 13.01.2021 analysis

Exchange Rates 13.01.2021 analysis

Pati Gani
Analytical expert of InstaForex
© 2007-2024

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.




You are now leaving www.instaforex.eu, a website operated by INSTANT TRADING EU LTD
Can't speak right now?
Ask your question in the chat.

Turn "Do Not Track" off