{"id":293506,"date":"2021-01-22T03:07:06","date_gmt":"2021-01-21T16:07:06","guid":{"rendered":"https:\/\/www.gomarketingteam.com\/articles\/stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin\/"},"modified":"2021-02-19T12:12:57","modified_gmt":"2021-02-19T01:12:57","slug":"stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin","status":"publish","type":"post","link":"https:\/\/www.gomarkets.com\/en\/weekly-summaries\/stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin\/","title":{"rendered":"Stimulus euphoria leads to all time highs, a new US administration and Bitcoin bust"},"content":{"rendered":"

By Lachlan Meakin<\/strong><\/p>\n

We had an eventful week on global markets with the inauguration of a new US administration and a dovish stance from the European Central bank fuelling hopes of extended fiscal stimulus in the new year.<\/span><\/p>\n

Equity markets<\/b><\/h4>\n

Risk appetite got a boost this week from a push by US authorities for nearly $2 trillion in additional spending and plans to jumpstart a federal response to the COVID pandemic.<\/span><\/p>\n

US equity markets had the best post inauguration performance since the 1980\u2019s driving the S&P 500, Dow Jones and NASDAQ indices to record highs.<\/span><\/p>\n

The NASDAQ was also helped along by big beats from Netflix and Intel who reported earnings this week.<\/span><\/p>\n

With this lead Australia’s share market hit 11-month highs, with help from an improved unemployment rate supporting investor optimism.<\/span><\/p>\n

European markets also performed well after ECB\u2019s decision to reconfirm its very accommodative monetary policy last night.<\/span><\/p>\n

\"\"
\nSource: Twitter<\/p>\n

COVID<\/b><\/h5>\n

With Executive Orders from the new US administration seeking to accelerate the rollout of vaccines and the seeming peak in US COVID cases there was optimism this week from major Wall St analysts that we could be seeing \u201cthe beginning of the end of the COVID crisis” in the US.<\/span><\/p>\n

\"\"<\/p>\n

Goldman’s top economist Jan Hatzius,\u00a0 writes that “a vaccine-driven reduction in hospitalizations is likely to kick off the growth rebound through relaxed restrictions and some reductions involuntary consumer social distancing.”<\/span><\/p>\n

\"\"<\/p>\n

Source: Zerohedge\u00a0<\/span><\/p>\n

Forex market<\/b><\/h4>\n

While record planned US stimulus helped push equities higher it also created a headwind for the US Dollar which continued its downtrend. All major currencies performed strongly against the greenback this week.<\/span><\/p>\n

\"\"
\nSource: Bloomberg<\/p>\n

Aussie Dollar\u00a0<\/b><\/p>\n

AUDUSD strengthened this week driven by US dollar weakness and a better than expected unemployment rate of 6.6% indicating continued recovery of the Australian economy from the COVID economic shock. AUD is trading in a tight range and has managed to hold the important 0.77c support level.<\/span><\/p>\n

\"\"<\/p>\n

Gold<\/b><\/h4>\n

Spot gold (XAUUSD) had a strong week on the back of US dollar weakness and stimulus hopes, it bounced strongly from the 1820 -1800 support zone making 2 week highs and being up around 2% for the week at time of writing.<\/span><\/p>\n

Negotiations in the US on the particulars of the proposed stimulus bill and positive or negative news on regarding COVID are expected to play a part in the next few weeks of future price movements.<\/span><\/p>\n

\"\"
\nSource: GO MT4<\/p>\n

Cryptocurrencies<\/b><\/b><\/h4>\n

It was a tough week for Cryptos with flag bearing tokens Bitcoin and Ethereum among others sliding dramatically after recent stellar rallies.<\/span><\/p>\n

Bitcoin dropped 10% alone on Thursday and down almost 20% on the week.<\/span><\/p>\n

The drop seems to be a long overdue correction and sustained profit taking, it wasn\u2019t helped on Thursday by a report in a trade blog suggesting that there had been what\u2019s known as a double purchase, where the same \u201ccoin\u201d is used in two separate transactions. This rumour went viral casting doubt on the security of the Bitcoin blockchain. Industry veterans and people familiar with blockchain technology downplayed the notion, but with so many new investors with a poor understanding of blockchain technology the damage was done.<\/span><\/p>\n

From a chart technician’s point of view, Bitcoin broke the lower barrier of the wedge pattern it has been consolidating in and has headed to the important 30000 support level.<\/span><\/p>\n

\"\"
\nSource: GO MT4<\/p>\n

By Lachlan Meakin<\/strong><\/p>\n\n\n\n\n\n\n\n
Monday, 25 January 2021<\/strong>\u00a0<\/strong>
\n<\/strong>Indicative Index Dividends
\nDividends are in Points<\/sup><\/em><\/td>\n<\/tr>\n
ASX200<\/strong><\/td>\nWS30<\/strong><\/td>\nUS500<\/strong><\/td>\nUS2000<\/strong><\/td>\nNDX100<\/strong><\/td>\nCAC40<\/strong><\/td>\nSTOXX50<\/strong><\/td>\n<\/tr>\n
0<\/td>\n0<\/td>\n0<\/td>\n0.012<\/td>\n0<\/td>\n0<\/td>\n0<\/td>\n<\/tr>\n
ESP35<\/strong><\/td>\nITA40<\/strong><\/td>\nFTSE100<\/strong><\/td>\nDAX30<\/strong><\/td>\nHK50<\/strong><\/td>\nJP225<\/strong><\/td>\nINDIA50<\/strong><\/td>\n<\/tr>\n
0<\/td>\n0<\/td>\n0<\/td>\n0<\/td>\n0<\/td>\n0<\/td>\n0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


\n<\/a><\/p>\n

Disclaimer:\u00a0\u00a0The articles are from GO Markets analysts, \u00a0based on their independent analysis or personal experiences. Views or opinions or trading styles expressed are of their own; \u00a0should not be taken as either representative of or shared by GO Markets. \u00a0Advice (if any), \u00a0are of a \u2018general\u2019 nature and not based on your personal objectives, financial situation or needs.\u00a0 You should therefore consider how appropriate the advice (if any) is to your objectives, financial situation and needs, before acting on the advice. \u00a0If the advice relates to acquiring a particular financial product, you should obtain and consider the Product Disclosure Statement (PDS) and Financial Services Guide (FSG) for that product before making any decisions.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

By Lachlan Meakin We had an eventful week on global markets with the inauguration of a new US administration and a dovish stance from the European Central bank fuelling hopes of extended fiscal stimulus in the new year. Equity markets Risk appetite got a boost this week from a push by US authorities for nearly […]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[128],"tags":[],"yoast_head":"\nStimulus euphoria leads to all time highs, a new US administration and Bitcoin bust - GO Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.gomarkets.com\/en\/weekly-summaries\/stimulus-euphoria-leads-to-all-time-highs-a-new-us-administration-and-bitcoin\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Stimulus euphoria leads to all time highs, a new US administration and Bitcoin bust - GO Markets\" \/>\n<meta property=\"og:description\" content=\"By Lachlan Meakin We had an eventful week on global markets with the inauguration of a new US administration and a dovish stance from the European Central bank fuelling hopes of extended fiscal stimulus in the new year. 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