Stocks, oil, and risk currencies gained on Tuesday as the formal go-ahead for US President-elect Joe Biden to begin his transition burnished a November already boosted by Covid-19 vaccines.
GBP/JPY: another way to bet on the pound
Information is not investment advice
The dire situation for the British pound continues. Although many of the negative things such as the likely resignation of Prime Minister Theresa May are probably already priced in, the uncertainty about the future should keep the sterling under pressure. The Japanese yen, on the contrary, may stay in demand as investors worry about trade tensions between the United States and China.
GBP/JPY is testing levels below the support of the last 4 trading days at 139.50. The previous attempt to break higher has failed. The focus in now at the 61.8% Fibo of the 2018-2019 advance at 138.60. The next Fibonacci level is at 135.70.
EUR/USD fell below 1.1850 after reaching 1.1920 on Monday. The pair consolidated after the initial bearish move.
USD/CAD remains within a downtrend. As a result, selling the pair as it turns down from resistance is the best strategy. Support lies at 1.3125.
U.S. stocks are set to reopen higher after the Martin Luther King Day holiday on Monday, with Yellen’s remarks a welcome reminder of the momentum behind economic stimulus measures.
Joe Biden will take the post of president of the USA on the morning of 20 January 2021. Trump is going to skip the inauguration. What will be the market reaction? Let’s find out!
Asian equity markets mostly rallied with risk appetite spurred as trade picked up from Monday’s holiday.