US stock futures and Oil price trading steady on Wednesday following the comments from Treasury secretary nominee, and former Federal Reserve chair Janet Yellen. Yellen pushed for a large fiscal relief package, to help the country's economy to deal with the effects of the Covid-19 pandemic. While the Bitcoin closed slightly lower after she said that cryptocurrencies are being used "mainly for illicit financing."
Wall Street set to open higher ahead of US President-elect Joe Biden inauguration later in the day. On the earnings front, Morgan Stanley (NYSE: MS) and Procter & Gamble (NYSE: PG) reporting earnings today before the bell while United Airlines (NASDAQ: UAL) is scheduled to report results after the market close.
Crude oil prices surged back to near the previous week highs supported by Janet Yellen positive comments and the weaker dollar.
In the currency market, the British pound climbed to fresh weekly highs lifted by the positive comments from Bank of England (BoE) chief economist Andy Haldane and stronger-than-expected inflation data.
The safe-haven metal trading higher on Wednesday. Overall, the momentum remains bullish throughout the European session.
On the data front, the UK inflation reported better-than-expected. The CPI increased to 0.6% in December of 2020 from 0.3% in November and slightly above market forecasts of 0.5%
On Tuesday, BOE chief economist said that he expects the British economy to begin to recover “at a rate of knots” from the second quarter this year as the coronavirus vaccine continues to rollout.
Moving ahead to North American session, the key economic event to watch Bank of Canada interest rate decision and policy statement.
Worldwide, more than 95.6 million people have been confirmed infected and more than 2 million have died. More than 51 million have recovered, according to Johns Hopkins University. The U.S. surpassed 400,000 COVID-19 deaths on Tuesday and the number of cases in the country exceeded 24 million. "It's hard sometimes to remember, but that's how we heal”, US President-elect Joe Biden said.
EUR/USD: The currency pair slightly retreated from the tops after rose to a fresh weekly high of 1.2155 supported by better-than-expected German ZEW economic sentiment data.
The important levels to watch for today: Support- 1.2100 and 1.2080 Resistance- 1.2160 and 1.2200.
GOLD: The precious metal trading steady above $1850. Any break above $1858 will open the doors to $1865 and $1870. On the downside, the immediate support at $1840.
The important levels to watch for today: Support- 1845 and 1838 Resistance- 1857 and 1865.
Quote of the day: The purpose of investing is not to simply optimise returns and make yourself rich. The purpose is not to die poor – William J. Bernstein.