Archives of “January 21, 2021” day

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ECB statement reveals slight compromise to the hawks but nothing more

  
Analysis, Economy

ECB adds one small part to its statement this month

“If favourable financing conditions can be maintained with asset purchase flows that do not exhaust the envelope over the net purchase horizon of the PEPP, the envelope need not be used in full. Equally, the envelope can be recalibrated if required to maintain favourable financing conditions to help counter the negative pandemic shock to the path of inflation.”

That’s pretty much the only thing that stands out in my view from the statement. It’s a slight concession but also comes with a caveat that the envelope could also be recalibrated to help deal with any negative inflation developments.
This isn’t anything new despite it being new to the statement, as it is merely a reiteration of the stance of the collective minds at the central bank since December.
Lagarde’s press conference will be up next at 1330 GMT and you can watch that here:

BOJ’s Kuroda: Will not hesitate to ease further if needed

  
  Analysis

BOJ governor, Haruhiko Kuroda, begins his press conference

Kuroda
  • Watching the impact of the coronavirus closely
  • Economic improvement to only be moderate
  • Downward pressure rising on the services sector
  • Inflation expected to stay negative for the time being, will eventually start rising
  • BOJ will continue efforts to support market stability
  • Downward pressure has increased after state of emergency measures
There isn’t anything too significant from Kuroda’s remarks above. He is mostly just reiterating the BOJ’s current stance with a few trivial comments about the economy. In case you missed it, the central bank kept policy unchanged earlier in the day here.

Nikkei 225 closes higher by 0.82% at 28,756.86

  
Analysis, Global Indices

A solid day for Asian equities in general once again

Nikkei 21-01
The Nikkei bounces back today, following the better mood in Wall Street where we saw record closes for the major indices in the US. That is being followed up with gains in futures today as well with S&P 500 futures up 0.3% and Nasdaq futures up 0.6%.
The Hang Seng is up 0.1% after trimming earlier gains while the Shanghai Composite is sitting 1.2% higher on the session so far going into the closing stages.
The dollar is still being pressured on the back of the more positive risk mood as it lingers near the lows for the day. GBP/USD is taking another look at 1.3700 while AUD/USD is keeping higher at 0.7775 near some minor resistance at 0.7780-90.
Elsewhere, precious metals are also gradually gathering steam once again with silver briefly breaching the $26 mark earlier – the first time in nearly 2 weeks.

White House Press Secretary Psaki holds first press briefings

  
Analysis, Politics

Takes over from Trump Administrations Kylie McEnaney

White House Press Secretary Psaki
  • Will bring back truth, transparency to briefing room
  • that she will participate in WHO meeting tomorrow
  • Biden’s 1st foreign leader call will be with Canada’s Trudeau on Friday
  • early leader calls will be with partners, allies
  • administration intends to return to regular health briefings
  • getting cabinet is front and center for president Biden (no cabinet members have been approved by the Senate)
  • plan to meet soon with congressional leaders on Covid
  • Covid relief package was not designed with $1.9 trillion as a starting point but based on need for special proposals
  • we are at the beginning of negotiations on Covid relief plan
  • clear preference is to move forward with bipartisan bill
  • will have more from health experts on schools reopening
  • follow on diplomacy will lead to constraints on Iran nuclear program
  • plans for Iran negotiations will be part of Biden’s early consultation with allies
  • more details on use of Defense production act for vaccine distribution tomorrow
  • Biden will leave the mechanics of running impeachment trial to Congress
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