Dollar Extends Losses Ahead of Biden’s Inauguration

USD

The dollar index, which measures the greenback against a basket of major currencies, extended losses, falling to 90.27, ahead of Biden's inauguration.  Investors are looking forward to the massive fiscal stimulus by the Biden's Administration to support the economic recovery from the severe impact of Covid19. Janet Yellen showed heavy support for Biden's stimulus stance, which issued alerts of possible extended dollar weakness during his term. The EURUSD rallied to $1.2157, and the GBPUSD raced higher to $1.3670.

Equities

Major US stock-index futures extended gains as investors anticipate further stimulus from Biden's administration. The New US President has massive plans to boost the US economic recovery, among them: pumping trillions of dollars into the economic spiral. With the Treasury Department and Federal Reserve support, and Blue sweep, his plans are likely to become a reality. On the other hand, risk appetite earned a lift following upbeat earnings by top US corporations. The Dow Jones Industrial Average futures rose to 30911, the S&P500 futures hovered near 3802, and Nasdaq futures ascended to 13071, close to posting a fresh record high.

Metals

Precious metals prices inched higher as the dollar weakened along with US Treasury yields. The price of a gold ounce rose to $1856, the price of a silver ounce advanced to $25.56, and palladium futures rebounded to $2376.

Oil

Oil prices marched higher, recovering from late losses lifted by hopes of further stimulus. Biden's administration is planning to implement additional support to the US economy, which would also boost the global economic recovery, helping oil-demand restore pre-pandemic levels. The West Texas Intermediate crude March Delivery rallied to $53.47, and the Brent blend March contract edged higher to $56.36.

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