Forex news for Asia trading
for Friday
15
January 2021
The
main points of incoming US President Biden’s coronavirus economic
rescue plan were reported a couple of hours ahead of his scheduled
speech. The response of markets was underwhelming with not a lot of
movement. Biden’s speech later was
a little more impactful, but not by much; there was a small sell off
in ‘risk’ FX and also in US equity index futures. While outlining
an enormous stimulus plan (which, of course, must pass Congress where
it may be whittled down some) Biden also said it had to be paid for.
He mentioned tax loopholes, though you can be sure there will be
higher taxes in the mix also. For the next few months/quarters though
its not about deficit
concern/austerity from
Biden but rebooting the health and economy of the US.
Currencies
were fairly quiet, trading small ranges only. The USD and yen outperformed.