The start of the second trading week of 2021 became nervous as some
difficulties in approval of new Biden’s multitrillion-stimulus plan emerged in
the U.S. Senate. The impeachment plan endorsed by Democrats became a sticking
point in the bipartisan government that may finally cause a quarrel between two
parties.
Moreover, stocks of the leading social networks like Twitter and Facebook
fell under pressure after a ban on the sitting U.S. President Donald Trump
accounts at least for his remainder in the White House after accusation of encouraging
insurrection made by the President. Twitter and Facebook shares immediately
plunged by 9% and 2.5% respectively.
However, overall market sentiment is still moderately positive. German
DAX lost just 0.8% on Monday, while British FTSE closed slightly lower, by
1.09%. U.S. stock indices were stronger posting just marginal losses ahead of
inflation data, start of the banking reporting season and the statement of the
Federal Reserve chair Jerome Powell later this week.
Most likely, the optimism will dominate stock markets this week
following S&P 500 as a guiding star on its way to new paramount highs at
4000 points.
Crude market is unlikely to be lagging behind. Brent crude benchmark may
hit $58-59 per barrel, but would like to run out of steam to perform new highs
as the deficit of crude globally is seen unlikely considering the continuous
second wave of coronavirus spread.
Gold prices are seen in unfavorable swing as the yields for U.S. 10-year
benchmarks Treasuries rocketed above 1.1% making them an attractive alternative
to the bouillon. So, we may see a further decline in gold prices after trading
sideways in the range of $1840-1880 per troy ounce. The nearest target is
located within the area of $1650-1700 per troy ounce.
Forex market is following U.S. debt. U.S. Dollar is gaining strength
with the rising Treasuries’ yields. The EUR/USD is strongly gravitating to the
1.2000 level and GBP/USD may fall to the 1.3200. The Greenback may rise vs the
Japanese Yen to 105.50.