So far this month, the Euro gained 2%. Against the safe-haven Japanese yen, the United States dollar remains stable.
A certain report is flagging the possibility of more fiscal stimulus shoring up investor confidence. The United States Federal Reserve prepared to start its corporate scheme to buy bonds. Thus, on Tuesday, the Euro remained little changed against the United States dollar.
During Asian sessions, the United States dollar had slipped, and riskier currencies rallied. Nevertheless, most major currencies stabilized, all trading broadly neutral, after European traders joined the market.
Still, the Euro was near to $1.15, this year’s high, after a 2% rise so far this month.
The Federal Reserve said that it would start buying corporate debt on Tuesday. This is part of an already announced stimulus plan. Moreover, the Federal Reserve launched its Main Street Lending Program for businesses.
The Dollar and Other Currencies
Jeremy Stretch is head at CIBS Capital Markets of G10 FX strategy. He said that they are, unfortunately, still in the environment where there is a great deal of uncertainty. Thus, they have had episodes where central banks either supported the market or added liquidity. The Federal Reserve behaved in the same way in that regard. Therefore, that kind of behavior is providing the impetus for a risk recovery.
A Bloomberg News report further supported investor sentiment. The report said that the Donald Trump administration was considering a near $1 trillion program for infrastructure. Citing several anonymous sources, this could boost the economy.
The news reinforced a belief that authorities will do whatever it takes to get the biggest economy of the world back on track.
Jerome Powell is Federal Reserve Chairman. On Tuesday, he will testify to the Senate Banking Committee. He will likely be delivering the same testimony on Wednesday before the House Financial Services Committee.
Investors are waiting to listen for hints that the Federal Reserve is willing to do more about the dollar’s situation.
This is the current news of the market.
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