Forex Today: Stocks rise, oil gushes, Bitcoin flirts with $50K as stimulus, vaccine hopes prevail
|Here is what you need to know on Tuesday, February 16:
The market mood remains upbeat as Americans return from a long weekend and President Biden is set to push through his stimulus plan. Oil extends gains, this time due to America's deep-freeze, while Bitcoin flirts with $50,000 and vaccine optimism prevails.
US stimulus: President Joe Biden is set to advance a covid relief plan which may reach $1.9 trillion on his first working day since his predecessor Donald Trump was acquitted. News out of Washington is set to rock markets.
S&P 500 futures and Asian stocks have been extending their gains, while US Treasuries are sold off. The rise in yields – with returns on ten-year bonds rising to 1.23% – has failed to lift the dollar.
US Stocks Weekly Forecast: Records are there to be broken
GBP/USD is standing out by advancing above 1.39. The UK reported the lowest number of COVID-19 infections since October and the vaccination campaign continues at a rapid pace.
WTI Crude Oil has been consolidating its gains above $60 originally underpinned by hopes for a vaccine-led recovery and lower supplies from OPEC+ countries. The most recent spike has come from a winter storm in the US which has knocked down the power for five million customers in multiple states. Production issues in Texas have hit output.
Bitcoin has hit the $50,000 mark on some exchanges, resuming its gains after profit-taking Monday. The granddaddy of cryptocurrencies has been buoyed by institutional interest from Morgan Stanley, Mastercard, and Tesla.
See the latest: Cryptocurrencies Price Prediction: Bitcoin, Ethereum & Stellar Lumens
EUR/USD has topped 1.2150 amid US dollar weakness. The economic calendar features an update on eurozone growth figures and the German ZEW Economic Sentiment.
Later in the day, Federal Reserve Governor Lael Brainard and her colleague Mary Daly are set to speak and may reiterate that the bank prioritizes reaching full employment at the expense of high inflation.
More Five factors moving the US dollar in 2021 and not necessarily to the downside
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