Forex Top Team

Senator Manchin has stated that he will not support the Biden administration’s tax and spending bills.

At the beginning of the week, the adjustment mood is spreading ahead of Christmas. Coronavirus infection is spreading again. The number of infected people in the United States is showing an increasing trend again, and the Netherlands has introduced lockdown measures before Christmas to be wary of infection with Omicron strains. Restrictions on movement between countries and strengthening of border measures are becoming a situation that may lead to slowing growth.

In addition, Senator Manchin of the US Democratic Party announced on the 19th that he would not support the Biden administration’s tax system and spending bill. Some financial institutions have lowered US economic growth forecasts as the $ 2 trillion bill, which is the centerpiece of the Biden administration, could fail.

Today, the People’s Bank of China announced that it will reduce the one-year preferential lending rate (LPR) by 0.05% to 3.80%. It is reported that the interest rate cut is the first in one year and eight months, and the purpose is to support the economy in response to the real estate industry and the slowdown in consumption. Normally, Shanghai stocks are welcomed as an economic stimulus measure, but today they are being pushed for sale. It seems that the market conditions are getting worse.

The dollar / yen pair was pushed down to the 113.10 level last weekend and then showed a rebound to around 113.80, but it fell to below 113.50 again in the Tokyo market at the beginning of the week. The top price of the cross yen is also heavy, and in particular, the currencies of resource-rich countries such as the Australian dollar and the Canadian dollar are being pushed to sell along with the depreciation of crude oil.

Christmas is coming up this weekend, and it is expected that the number of participants will decrease in the London / NY market after that. It is a risk aversion trend in the thin business, and I would like to pay attention to movements such as stop hunting in the foreign exchange market.

Today, Senator Manchin has already said that today’s Nikkei average is 607 yen lower. Also pay attention to tonight’s US stocks. If you’re going to sell it back, you’ll want to sell and enter the S & P 500.

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