[ Back ]     [ Comments ]     [ Print ]

News Admin
News Provider
 Nur Aisha Abd. Wahab
News Source
 Borneo Post Online
 US in chaos as presidential transition looms closer

Borneo Post Online (11/01/2021) –

Fundamental outlook

Early last week, the Georgia senate runoff officially declared the Democrats as winner, infuriating President Donald Trump’s supporters. Pro-Trump rioters stormed the Capitol Building in Washington DC before the Congress could officially declare Joe Biden as the winner of the President-electorate. Trump urged the rioters to go home but still lamented that the election result was illegitimate.

On Thursday, Trump finally conceded that Biden will become the next US president. He further commented that he would not attend the inauguration ceremony on January 20. Following the chaos in Washington DC, social media companies Facebook, Instagram, and Twitter have suspended Trump’s accounts indefinitely to curb another possible incitement for an armed protest on January 17.

The US payroll fell 140,000 in December against an expected gains. Unemployment rate held steady at 6.7 per cent. The economy saw job loss for the first time since April due to the surge in Covid-19 cases within the country.

NYSE has confirmed the de-listing of three Chinese companies after reversing the decision initially by saying they would not implement the order.

On Friday, the Dow Jones, S&P and Nasdaq benchmarks all closed at fresh new records highs while investors shrugged off the turmoil from the US riot and worsening pandemic crisis in anticipation of more fiscal stimulus from Biden’s administration.

Technical forecast

US dollar/Japanese yen stood firm at 102.50 support last week and closed at near to 104 on Friday. The dollar regained in strength and might push the US dollar/Japanese yen to 105.50 this week. Support has risen to 103.50 in case of a drawdown.

Euro/US dollar has shown some weakness after reaching 1.2350 top last week. We reckon the trend could soften and trade from 1.2150 to 1.2350 as the dollar might recover slightly. Profit-taking is expected in the market as traders begin to adjust their positions.

British pound/US dollar revealed some profit-taking activities as the trend fell back to below 1.36. We forecast the trend could trade sideways from 1.35 to 1.37 before finding an eventual direction. Despite the positive post-Brexit news, the worsening pandemic crisis have deterred investors to indulge in buying the pound. Risk management is recommended in case of a high market volatility.

WTI Crude prices crossed above US$50 per barrel last week. We forecast the recovering dollar could add pressure on crude prices and deter market buyers. We target resistance at US$54 per barrel in case of a continuous rise. The support at US$50 per barrel is crucial because violating beneath this level will resume the selling trend to US$47.50 per barrel.

Crude Palm Oil (FCPO) Futures on Bursa Derivatives has reached a 10-year high record at RM3,888 per metric tonne last week and encountered profit-taking activities. March Futures settled at RM3,820 per metric tonne on Friday. We expect the trend could continue to wane if the bulls cannot across above RM3,900 per metric tonne. Downtrend might stretch to RM3,650 per metric tonne in case of an unwinding of positions.

Gold prices saw a huge plunge on Friday and closed at US$1,848 per ounce. We expect the trend to dip and attempt US$1,800 per ounce before bargain hunting begins. The overall range could be contained from US$1,790 to US$1,860 per ounce amid mixed trading activities. Buyers are advised to exercise caution for bottom picking.

Silver prices dipped on Friday and closed at US$25.35 per ounce. We reckoned the market movement could slide further and potentially reach US$20.50 per ounce. Resistance could emerge at US$27 per ounce in case of an initial retracement. Traders should be cautious of a potential price fall and avoid picking the bottoms too quickly.

Read more at https://www.theborneopost.com/2021/01/11/us-in-chaos-as-presidential-transition-looms-closer/

Malaysian Palm Oil Board ( MPOB ) Lot 6, SS6, Jalan Perbandaran, 47301 Kelana Jaya, Selangor Darul Ehsan, MALAYSIA.
Tel : 603 - 7802 2800 || Fax : 603 - 7803 3533