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Daily Market Commentary 12th January 2021

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US political fallout continues to spook markets, as the Democrats look to introduce articles of impeachment against President Trump, again! The Democrats are desperate to rid themselves of the President despite his scheduled departure on the 20th of January? The Biden administration is promising Trillions in stimulus, which may entice markets for a short time, a sugar hit! US equities drifted lower, following the European lead, while the US Dollar regains more ground. The EUR slipped back to 1.2150, while the GBP drifted to 1.3525, with the rumours of political instability in Italy.

Commodity currencies suffered the resurgent reserve, with the AUD falling back to 0.7700, while the NZD dropped to 0.7180. The political turmoil around the world and the virus restrictions do not bode well for trade exposed currencies, despite the massive liquidity boosting asset prices. Look for further Geo-political leads for markets.

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