On the foreign exchange market, the dollar slipped against other major currencies for the third consecutive session, again due to the expectation of the stimulus initiatives promised by the Biden administration. On Thursday evening, the dollar index (which represents its evolution toward 6 benchmark currencies) was 90.09 points (-0.42 percent).

After the ECB’s status quo and remarks by its President Christine Lagarde, the euro rose 0.52 percent to $1.2167. The bank said on Thursday that, because of its negative effects on inflation, the institution was tracking the euro’s exchange rate. Lagarde defended the ECB’s ultra-accommodative approach, referring to the existence of short-term growth threats as a consequence of the Covid-19 revival, even though she claimed that the Eurozone economy’s risks are now less prominent in the medium term.

Sovereign prices increased in the bond markets in both Europe and the United States. The 10-year German Bund yield increased by 3 basis points to -0.50 percent, while the 10-year T-Bond yield jumped by 2 basis points in the United States to 1.10 percent on Thursday, after reaching a 1.18 percent high since March 2020, in expectation of a recovery in inflation as a result of the post-Covid-19 economic recovery.

Joe Biden is still eagerly waiting on his proposal to boost the economic plan of $1,900 billion that could fail to pass as it sits in the Senate, split between Democrats and Republicans into 50/50 seats. Any Republican elected officials would be hesitant to contribute to the budget deficit, according to press accounts, and the proposal would need to be prepared if the president wanted to receive bipartisan approval for his plan.

The package, which comes after the $900 billion plan enacted by Congress before Christmas, provides financial assistance of $1,400 per U.S. households (in addition to the $600 under the December plan) and an increase to $400 per week in unemployment insurance (from $300 planned in December).

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

LEAVE A REPLY

Please enter your comment!
Please enter your name here