The market situation is quite optimistic throughout that whole day. That pushes USD to have a lower value especially to its rival which has high returns. Now, investors are waiting for the comment from Janet Yellen. She is the finance secretary candidates.
Based on the schedule, she will speak in front of congress. However, several points of her speech have been released. It was done to limit the effect that may be happened because of that saying in a financial market.
However, Yellen promises to increase the amount of stimulus where she said that it is the right time to spend a lot of money. Besides, she is also more than ready to use several instruments. That is essential to overcome the unfair and harsh practices in Chine.
Other Points Stated By Janet Yellen
Based on the news, Yellen told that she wants to reverse some incentives to become off-shoring. That may overload the index and in the end, it will stop the dollar from weakening. Based on the data, some currency pairs are moving and having the different level now.
The EUR / USD is now back to its 1,2100 level. Meanwhile, the pair of GBP / USD increases above 1,3600, but there is a little bit of follow-up. It seems that currencies with high yields still do not attract people or in this case is the buyer.
Elsewhere, USD / JPY is weakening? Furthermore, currencies which are related to commodity see a little bit of action. The sign is greenback which is stronger than them. Talking about the coronavirus, the new cases in England and the USA are decreasing.
However, a source there reported that there are for about 33000 infections that happened in a day. That was the first report. Meanwhile, the last one said that the death cases are 4000.000 people. The numbers are still high until now.
Decisions Through That Condition
The severe COVID-19 that is still happened made the government in several countries released their rules and decision. One of the examples is by making a tight lockdown. It is especially is in the north part of this universe.
German is an example. That country extends its restriction until the 14th of February. Meanwhile, vaccination is continued in several places in the world. So far, those vaccines show good efficacy such as for Pfizer, Sinovac, Moderna, and more.
For your information, the price of gold is not moving. It faces the bright future condition of $1.837 per troy ounce. That is for the second days in a row. Meanwhile, the oil’s price is a little bit ‘healed’, but still at a normal level so far.
Gold Was Weakened Before
Gold was weakened and it reached $1.841. That situation happened after the commodity made two times in a row winning in the beginning Asian session. That yellow metal bounced from the two support lines in multi-days from March. That condition is highlighted.
The cause is a weakening dollar. However, the severe coronavirus and the sentiment ahead of Biden's inauguration trigger a more risky situation. Once again, the speech made by Yellen will have a huge impact and effect on this commodity.
Meanwhile, the Fed boss highlights the urgency of fighting the pandemic and note the interest rate. That must be as low as possible for supporting the stimulus. A signal made by Biden about his second fund package created the market optimism.
On the other side, a report stated about the lack of vaccines in New York, extended lockdown in German, and vaccine delay in Canada also have their own effect. Furthermore, the gold buyers will always pay attention to the USA political condition and many updates there.
