Breaking: US Senate, White House, Democrats reach agreement on Bipartisan COVID-19 stimulus plan

FXStreet Team FXStreet

US Senate Majority Leader Mitch McConnell has taken the podium and announces that the US Senate, White House and Democrats finally reach an agreement on Bipartisan COVID-19 stimulus plan to fight the economic impact of the coronavirus pandemic on the US economy.

No further details are out from the officials yet, as the negotiations are being wrapped with the final touches.

CQ Now cited remarks by Eric Ueland, saying that "much of the bill text has been completed and we'll finish what's left and be able to circulate it early in the morning".

Meanwhile, Bloomberg is out with some details on the economic package, as cited by some sources familiar with the deal.

US stimulus agreement has approximately $50 billion for airlines.

The stimulus bill is to be worth more than $2 trillion.

Market reaction

The risk sentiment has received an added boost, with the US equity futures trimming losses while the Asian equities are pushing higher. The Japanese benchmark, the Nikkei 225, has ramped up gains beyond 7%.

The US stimulus plans seem to ease the fears over a likely global economic slowdown amidst the virus crisis.

The US dollar index is recovering ground across its main competitors, with DXY now trading near 101.65, having bounced-off a dip to 101.41 lows.

The higher-yielding Aussie picked up bids, taking the AUD/USD pair back on the 0.60 handle, reaching a high of 0.6035. USD/JPY retested 111.50 following a drop to 110.75 in early Asia.

Gold prices shed nearly $15 on the announcement and now trades near $1660 levels, almost unchanged on the day.

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD sits near monthly high, around 0.7035 on hawkish RBA

AUD/USD trades around 0.7030-0.7035 in the Asian session on Thursday, near its monthly top, as recent hawkish comments from RBA officials continue to underpin the Australian Dollar. The US Dollar, meanwhile, struggles to lure buyers amid further declines in US bond yields, adding support to the pair. However, Fed rate-hike bets and geopolitical uncertainty help limit losses for the safe-haven buck, warranting caution for Aussie bulls.

USD/JPY remains confined in a familiar range; holds steady above 158.00

USD/JPY extends its consolidative price action through Thursday's Asian session, trading just above 158.00 amid diverging forces. Uncertainty over the timing of the next BoJ rate hike keeps Japanese Yen bulls on the defensive. The US Dollar, meanwhile, languishes near multi-week low amid declining US bond yields. Furthermore, looming intervention risks limit JPY losses and cap the pair. Traders also seem hesitant ahead of the Fed and BoJ meetings next week.

Gold hangs near one-week low; eyes $4,100 break amid Fed hike bets

Gold attracts fresh sellers in Thursday’s Asian session, sliding closer to a one-week low touched the previous day. Firming expectations for an imminent Fed rate hike, bolstered by oil-driven inflation risks, weigh on the non-yielding bullion. Meanwhile, declining US bond yields counter geopolitical uncertainty, keeping US Dollar bulls on the defensive. This helps XAU/USD defend $4,100.

Dogecoin Labs launches, resistance looms

Dogecoin (DOGE) Labs launched Wednesday in partnership with the Dogecoin Foundation, bringing together several product teams and technologies to expand the use of the memecoin (DOGE) across payments, decentralized finance (DeFi) and consumer applications. The launch will consolidate MyDoge, DogeOS and Such App under one business, led by Jordan Jefferson, founder of MyDoge and DogeOS.

What the midterm elections mean for Treasury yields, the Dollar and Gold

Democrats are priced to take the House, so November 3 comes down to the Senate and how much Washington can borrow without the other party. Treasury yields will show the answer first, then the Dollar and Gold. On November 3, Americans vote for all 435 House seats and 35 Senate seats. For bond prices, the result comes down to one thing: how much the government will borrow over the next two years.

The US Dollar fell. Gold didn't rally. That tells you everything

Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.