US stimulus package approved! Markets move towards risk-on
The US dollar fell against peers following the announcement that the White House and US Congress agreed on a stimulus package. The rescue package contains nearly $2 trillion in tax breaks and spending. Part of this plan includes direct payments to lower and middle income Americans of up to $1,200 per adult and $500 for each child. In addition to that, unemployment insurance will be extended to four months, cover more workers and be increased by $600 weekly. In reaction to this news, markets moved towards risk-on trading causing the dollar and other safe-haven assets to weaken.
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March 25, 2020
EUR/USD 1.0823 GBP/USD 1.1823 USD/CAD 1.4302 AUD/USD 0.6017 USD/JPY 111.40 USD/CNH 7.1250 USD/ILS 3.6360 USD/MXN 24.3757 USD/CHF 0.9797 USD/INR 76.1025
USDThe US dollar is lower against its peers following the stimulus announcement from the White House. Data out of the US to be released today include Durable Good orders, MBA mortgage applications and FHFA house price index.GBPSterling hit a one-week high of $1.1973, strengthening overnight by 1.8%. In another attempt to contain the coronavirus, the UK parliament is closing for four weeks starting tonight.EURThe euro continues to climb versus the dollar. The currency pair is trading 0.2% higher.CADThe loonie strengthened against the US dollar following the announcement of the US stimulus plan. USD/CAD fell 0.5%, approaching C$1.43.ASIA/PACIFICSafe-haven currencies JPY and CHF were the only G10 currencies that did not gain against the greenback. USD/JPY is trading flat around 111. The Australian dollar rose about 2% while the NZD also rallied against the dollar before erasing gains.