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Trump in Focus

Forex Signals Brief for Jan 4: US Politics in Focus

Posted Monday, January 4, 2021 by
Rowan Crosby • 2 min read

US Market Wrap

Markets might have rounded out 2020 in sombre fashion, but this week marks arguably the biggest we’ve ever seen in US politics.

While many in the media have anointed Joe Biden the US President, the reality is that there is a lot left to play out in the fallout from the US Election. On January 6th at 1 pm, we will see Congress meet to formalise the votes from the Electoral Colleges.

It’s at this meeting that any objections can be raised and importantly, the votes will ultimately be certified by Vice President Mike Pence, whose role is to officially oversee the Senate.

Ever since November 3rd, there have been widespread calls of election fraud which as yet have not been heard in any court. What is expected to happen is that if there is any objector from both the House and Senate, then the voting and election will be debated in both houses. This could well last for many days.

At this stage, over 100 members of the House are set to object while more than a dozen Senators will also be disagreeing with what happened. President Trump is expected to release new evidence and this will be the opportunity for the public to decide for themselves.

Interestingly, Vice President Mike Pence has the ability to throw out any fraudulent votes and can declare President Trump the victor.

At the same time, we have the Georgia run-off elections going on as well. The Republicans need to hold onto those two seats to remain in control of the Senate.

Markets are already signalling that we are entering a period of uncertainty. We have seen GOLD open the week above $1900, while BTC has broken out to new record highs and is approaching $35,000. While the USD is lagging and will likely see more selling in the coming months as the loss of trust in the US Goverment grows by the day.

The Data Agenda

The main data focus of the week is, of course, politics, however, it is worth noting that we will see the release of the latest US jobs data on Friday.

The rate of jobs returning has slowed and we are only looking at a 100K increase. The unemployment rate is sitting at 6.7% and that is expected to climb to 6.8%.

Forex Signal Update

The FX Leaders Team hit 4 winners from 7 signals last week, with the falling USD helping all of our signals.

Keep watching the forex signals page as there could be plenty of action this week with a move towards safe-havens and away from the Greenback.

 

USD – Watching 

The USD has been very soft over the past few months, really since March. That trend is expected to continue well into February.

 

Gold – Watching

GOLD has opened up above $1900 and we should expect to see plenty of upside this week as uncertainty reaches fever-pitched levels.

 

Cryptocurrency Update

BTC jumped sharply over the holiday weekend and is now pressing towards the $35,000 level, while ETH is also rallying hard through $1,000.

As I mentioned earlier today, uncertainty is driving the crypto’s as they now become the new safe-haven trade. We could see a lot more upside ahead, but be aware of a possible correction just like we saw in 2018.

 
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