Following yesterday’s smooth inauguration of President Biden, attention across financial markets will return to economic data and central banking. Today sees the first European Central Bank announcement of 2021 which could help the euro re-establish its upward trend.
President Biden has already taken several actions since transitioning into power yesterday afternoon. To name a few, he’s signed the US back into the Paris Climate Agreement and has also ceased construction of the US/Mexico border wall. The focus will now be on the president’s first 100 days in which we’re expecting many fresh changes.
The European Central Bank is not expected to amend policy after announcing a new round of stimulus back in December. However, many participants will be keeping a close eye on how Madame Lagarde responds to the extended lockdowns and new virus strains. Also, any comments referencing the currency’s recent strength could well create increased volatility as traders and dealers assess whether the central bank is unhappy with the euro’s sharp gains.
8:19am, January 21st 2021
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