Bull Sheet - Brace Brace, For Biden’s Stimulus Plan

The main event today will be the unveiling of incoming US president Biden’s stimulus plan. The overall price tag of the package will likely be the main variable for markets, but the details and scope of the proposal could also prove crucial. According to reports, the package of proposed measures is expected to amount to USD 2 trillion, i.e. USD 700 billion more than what the Democratic leader in the House of Representatives, Chuck Schumer, proposed yesterday.


The aid is to include extending support for the unemployed, but also supporting state authorities during the pandemic. Nevertheless, nuances such as the speed of implementation of individual solutions may turn out to be key.


The Democrats' position in Congress is not that comfortable - they control the Senate, but in this case it will be necessary to support at least 10 Republican Senators. They may only be favourable to some projects that they believe are worth implementing quickly due to the pandemic. You shouldn't count on more.


Especially that if the "judgment over Trump" theme does not appear in the Senate until after January 20, it may only intensify the axis of the political dispute, and the worst is if it obscures other, much more important topics.


Watching markets behaviour this morning it can be seen that there is a willingness to play the "Biden stimulus", but there is no visible excessive outburst of optimism, the wow factor is not present.


What’s with the recent dollar recovery?


US Dollar pops to highs after 90 level retest, gold pulls back as bond yields drop across Europe, boosting the Greenback's relative yield advantage. I am bullish on greenback until proven otherwise.



Dominik Stone

Tokenhouse Yard

City Of London, EC2R 7AS

Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By Viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Dominik Stone, it's employees, directors or fellow members. Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, spot forex, cfd's, options or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

© 2021 Copyright Dominik Stone International. All rights reserved.