The US Reports New Economic Incentives

March 25, 2020

by JustForex

Yesterday, the US dollar fell again relative to a basket of major currencies. The dollar index (#DX) closed in the negative zone (-0.96%). US authorities have agreed on an incentive package to mitigate the economic impact of the coronavirus outbreak. Reportedly, the total aid volume will amount to about $2 trillion. According to the plan, the text of the agreement will be presented on Wednesday evening. Also, US President Donald Trump wants to end quarantine by mid-April, but the Department of Health is opposed. WHO said on Tuesday that there was a “very large acceleration” in the coronavirus spread in the United States.

On Wednesday, China reported a decrease in the number of newly confirmed cases of coronavirus due to a slowdown in the “importation” of the infection from the outside and the absence of locally transmitted cases. According to the National Health Commission of the PRC, 47 new cases were registered yesterday, all of which are related to people who returned from abroad, while a day earlier 78 new cases were recorded.

The “black gold” prices are growing. Currently, futures for the WTI crude oil are testing the $23.45 mark per barrel. At 16:30 (GMT+2:00), US crude oil inventories will be published.

Market indicators

Yesterday, there were aggressive purchases in the US stock market: #SPY (+9.06%), #DIA (+11.02%), #QQQ (+7.74%).

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The 10-year US government bonds yield fell again. At the moment, the indicator is at the level of 0.83-0.84%.

The news feed on 2020.03.25:
  • – German IFO business climate index at 11:00 (GMT+2:00);
  • – Core durable goods orders in the US at 14:30 (GMT+2:00).

by JustForex