Market worries about U.S. political risks
The US House of Representatives passed a resolution requiring Pence to use the 25th Amendment to remove Trump. According to foreign media news, the US House of Representatives voted on the 12th local time to support the request that Vice President Pence use the 25th Amendment to the US Constitution to remove President Trump. The result of the vote was 222 for and 204 against. Before the resolution was passed, Pence had sent a letter to Speaker of the House of Representatives Pelosi that he refused to use the 25th Amendment.
According to previous reports, Pence had expressed his refusal to use the 25th Amendment before the resolution was passed. The Speaker of the U.S. House of Representatives, Pelosi, said on the 10th that House Democrats will propose a resolution requiring Vice President Pence to use the 25th Amendment to the U.S. Constitution to remove President Trump. If Pence refuses, the House of Representatives will advance impeachment. Lampe’s program.
Biden has high hopes:
The Democrats won the Georgia runoff last week, thus achieving their goal of controlling both houses of the US Congress. Once Biden assumes the presidency of the United States and begins to introduce stimulus measures, take a more coordinated approach to combat the epidemic, and accelerate the introduction of vaccines, the market focus will return to expectations for the speed of economic recovery. This triggered the recent surge in U.S. Treasury yields and stopped the dollar's decline.
Los Angeles Wedbush Securities general manager of stock trading Michael James said that traders are betting that the incoming US President Biden will launch a larger-scale fiscal stimulus and speed up the distribution of the new crown vaccine will boost the economy.
The Fed will not relax in the short term:
As the vaccine takes effect, the US economy will recover strongly. This has led the market to worry that the Fed may cut debt purchases earlier than expected. This is also the reason why U.S. Treasury yields have recently increased, which in turn boosted the rise of the dollar. Previously, some Fed officials had different signals on how long such a loose policy could last. They raised expectations of rising US interest rates and made the US dollar more attractive.
However, there was strong demand for the $38 billion 10-year U.S. Treasury bond auctions overnight. Coupled with the speeches of several Fed officials, the above-mentioned expectations were hit, and some of the market's concerns were eased. They said it is still too early to discuss debt reduction in the context of the continued development of the epidemic.
Gold shorts or bloodbath the market again:
The four-hour chart of gold shows that the price of gold quickly expanded after falling below the lower track of the upward channel since the end of November last year, once fell to 1817, and then the market fluctuated upward, but the intensity was not strong.
Currently, the price is operating in the falling flag shape, and the lower rail of the flag shape cuts in at around 1846. Once below the flag-shaped lower rail, it will release a signal of further decline, do not rule out testing 1817 or even fall to 1800, 1765 and other levels.