BIDEN TO TAKE OFFICE TODAY
As Donald Trump, the 45th President of the USA, left behind the conflicted 4 years in his office, his Democratic opponent Joe Biden, elected on November 3, 2020, is expected to take over as of today. Members of Congress, who gathered in the United States on January 6 to confirm the election results, under the chairmanship of Vice President Mike Pence, were attacked by some pro-Trump protesters. Demonstrators who broke through the police barricade and attacked Congress strengthened the perception in the markets that Trump was provoking the public. Following this development, an access ban was imposed on Trump's Twitter account, one of the social media giants. With the dismissal investigation initiated by the Democrats, Trump got his name written as the third president who has undergone dismissal investigation in US history. As a result of all these developments, Trump, who insisted on many times that the election results were "fraudulent", announced that Biden would not attend the inauguration ceremony.
What is Expected from Biden?
- Biden accusing Trump of underestimating Covid-19 is expected to increase action on this issue.
- According to the statement of the new Treasury Minister Yellen, Biden is not expected to increase taxes during the epidemic.
- It is expected that Biden will continue to work for the incentive package, which is the first action as soon as he takes the seat, to pass the Congress.
Before Biden, who was elected to the US Presidency, took the seat, the pair returned from 1.2050 with a slight depreciation on dollar assets. Especially the recovery in risk appetite weakens the demand for the dollar somewhat. We expect the pair to increase with resistance at 1.2270 and 1.2335, with resistance over 1.2175. However, for a possible loosening potential, it is useful to consider the support levels of 1.20 and 1.19 in the close below 1.2090.
In the new week, while the expectation index that Joe Biden's incentive package will not pass by the Congress was suppressed, the index increases were raised to 13,000 with the support of the new Treasury Minister Yellen. On the other hand, while the risk appetite is high in the markets that focus on the supports from Biden, we follow the resistance levels of 13.140 and 13.275 in the index increases. Due to a possible realization, the support levels of 12,900 and 12,775 below remain up to date.
Although the recovery in risk appetite reduces the demand for safe havens, it is seen that the precious metal has turned upwards with the return it experienced from 1825. Especially in precious metal, with the passing of 1850 resistance, the uptake potential can continue up to 1870 and 1890 resistance levels. However, with the passage of 1825 support, which is a strong support below, the declines can be expected to continue up to 1800 supports.