Dollar Lost Some Ground On Thursday Weighed On By Washington Incident

Backed by the expectations of a stimulus plan, the 10-year T-Bond yield crossed the 1 percent mark for the first time in months on Wednesday and managed to climb to 1.08 percent on Thursday (up 5 basis points). Bank shares benefiting from an interest rate increase climbed for the second day on Thursday, as did Bank of America (up 2.2 percent), JP Morgan (up 3.2 percent) or Morgan Stanley (up 1.7 percent), and Goldman Sachs (up 1.7 percent) (up 2.1 percent).

The dollar index bounced back 0.3% to 89.80 points, while the euro dropped below $1.23 to $1.2273 (-0.4%), but remains near its peak versus the greenback in nearly three years.

On Wednesday, hours after protests and violent scenes in Washington, when pro-Trump protestors tried to burst into Congress, leading to its evacuation, Joe Biden was formally certified by Congress as the 46th President of the United States.

By addressing his big backers in Washington on Wednesday that he would never admit defeat, the outgoing president sowed confusion. He said, even calling on his followers to march to the Capitol, “We will never give up. We will never concede defeat.”

Nevertheless, Donald Trump attempted to ease the crisis later that evening, releasing a message telling his followers to “stay peaceful.” He then asked them to “go home now” before proceeding to condemn a “stolen election.”

Donald Trump’s account was briefly suspended by Twitter and Facebook, while President-elect Joe Biden dubbed the violence on Capitol Hill an “insurrection.” “At this time, our democracy is under attack like never before since modern times.”

On Thursday, before the formal end of his term on January 20, voices called for the removal of the outgoing president.

Released on Wednesday, the Fed Minutes went almost ignored as the minutes of the last Fed meeting did not bring any substantial developments.

 

Leave a Comment

Your email address will not be published. Required fields are marked *