On Wednesday, risk sentiment got boosted again as the US Senate and White House finally agreed on the coronavirus relief package. In response, the US Dollar weakened and declined to the mid-101.00 region while the most currency pairs edged up.
At last, Democrats, Republicans, and the Trump administration struck a deal on $2trln stimulus plan to support the economy and aid businesses, workers and healthcare system affected by the coronavirus pandemic. The agreement came after long negotiations as the first two attempts to get the majority in the Senate failed.
The announcement cheered markets and calmed down their fears that the US may become the new epicenter of an epidemic that raced all over the world and conquered the entire globe. On the headlines, the US stock futures pared losses while the Asian indices continued its recovery following solid gains on Wall Street. Japanese Nikkei 225 rallied by over 7%.
As for the G10 currencies, USDJPY took the 111.00 mark and pushed higher, AUDUSD pierced the 0.6000 level and traded with nice daily gains while the Kiwi followed suit of its Australian neighbor and approached the 0.5900 area. The EURUSD pair continued to hold above the 1.0800 level while the Cable anchored in the 1.1830 region. USDCAD turned out to be the only loser that kept in the red amid the fragile USD and the strengthened Loonie supported by the rise in oil prices.
Still, coronavirus concerns check most majors’ rallies. Although Wuhan province is on the way to recover from the new pandemic and eases the restrictions, the number of global cases exceeded 400,000 people while more countries such as Poland, India, and Egypt announced lockdowns. The situation in the US worsened and France despite the shutdowns has more than 1,000 deaths from COVID-19.
Later today, we’ll see the German IFO readings while in the NA session the US will publish the Durable Goods Orders, the Housing Price Index and the EIA Crude Oil Stock Change that may be of interest for traders.