Stimulus bill all but finalised
After months of negotiations, we may finally see a new stimulus bill passed by the parliament in the US.
Currencies looked weaker during the first half of the session before as strong finish put them slightly ahead of where they started the day. The EURUSD began the day at $1.2202 and fell throughout early trading, hitting lows of $1.21284 mid-session. It rebounded from that point, rallying to a high of $1.22524 late in the day. It is now trading at $1.22341. The pattern was very much similar for the GBPUSD after it opened the week at $1.34241. The pound plummeted over the first half of the day, hitting lows of $1.31861 mid-session. Like the euro, the pound surged over the back half of the day, hitting highs of $1.34993 late. It has come off those highs and is now trading at $1.34481.
Indices were all over the place last night, with the Dow showing more resilience than the Dax. The Dow started the week at 30,402.57 and ticked up to a high of 30,434.65 in the opening hour of trade. It came off those highs and remained steady in early trading before falling away mid-session, hitting lows of 29,419.64. It rallied off those lows, reaching as high as 30,300.70 late. It is now trading at 30,194.00. The Dax opened Monday at 13,599.98 and nudged up to a high of 13,614.99 in during the opening hour of trade. Things went south from there as the German index tumbled to lows of 13,047.18 mid-session. It bounced off those lows and is now trading at 13,349.14.
All eyes are on the new coronavirus stimulus bill that is set to be signed-off in the US. The $900 billion bill will give Americans a $600 payment in what will be a small relief from the devastation government shutdowns have brought upon the nation. Many are arguing that $600 is not enough, while there are many items in the bill that have nothing to do with the virus.
Data being published today includes:
China – CB Leading Index
Europe – German GfK Consumer Climate
UK – Final GDP, Public Sector Net Borrowing, Revised Business Investment, Current Account
US – Final GDP, Final GDP Price Index, CB Consumer Confidence, Existing Home Sales, Richmond Manufacturing Index
Disclaimer: The information in this website is of a general nature only and the advice has been prepared without taking account of your objectives, financial situation or needs. Accordingly, before acting on the advice, you should consider the appropriateness of the advice having regard to your objectives, financial situation and needs. We recommend you seek independent advice if necessary.