Here is what you need to know on Wednesday, April 7:
The market mood remains upbeat amid better growth expectations. The drop in US yields is dragging the dollar down. President Biden is set to provide an update on his spending plans and investors eye the Fed's minutes to see if there is a tendency to raise rates. Cryptocurrencies are consolidating previous gains.
The International Monetary Fund (IMF) boosted its global growth forecast to 6%, yet noted divergences between countries. Vaccination campaigns and fiscal stimulus are behind the upgraded projections.
The US dollar is on the back foot as US Treasury yields dropped to around 1.65% as investors buy bonds after the previous sell-off related to upbeat US data. The latest such figure was the JOLTs job openings, which smashed estimates with 7.4 million in February.
US President Joe Biden is scheduled to deliver remarks on his proposed infrastructure and tax program. Democrats will be able to pass such the $2.25 trillion scheme without Republican support according to a ruling by the Senate parliamentarian. Negotiations within the party are critical to its passage.
Biden brought forward the goal for offering vaccines to all Americans from May 1 to April 19, adding to the upbeat mood.
The Federal Reserve's meeting minutes from its March meeting may shed some light on how many members see interest rate hikes coming sooner rather than later. The Fed is more optimistic than beforehand but urged caution.
GBP/USD trades close to 1.38, consolidating its falls despite Britain's upbeat vaccination campaign, which will receive another shot in the arm from the usage of Moderna's vaccines.
EUR/USD took advantage of the upbeat mood and topped 1.1850 on Tuesday after the EU brought forward vaccine projections. The bloc aims to surpass half of the population by the end of June. On the other hand, concerns about AstraZeneca's jabs persist. An update about a potential link between the inoculations and blood clouds is due out later in the day.
WTI Oil edged up toward $60 amid better expectations for global growth, but prospects of Iran coming back online weigh on prices. Oil inventory data is awaited.
Cryptocurrencies: Several altcoins such as XRP, Cardano, Binance Coin, and also Ethereum have been consolidating their gains after surging earlier in the week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.