What you need to know on Friday, April 2:
The dollar edged lower against all of its major rivals, as US Treasury yields were in retreat mode. The yield on the benchmark 10-year Treasury note fell to 1.67% 10 basis point down from the multi-month peak achieved earlier this week.
Dollar rivals couldn’t take advantage of its broad weakness. The pound was the best performer, flirting with weekly highs in the 1.3850 region before retreating some. The Canadian dollar was also at the top against the greenback, helped in US trading hours by rising oil prices.
US President Joe Biden announced a $2.3 trillion spending program to tackle the effects of the pandemic on economic growth, focused on infrastructure and climate change. His proposal includes raising taxes on business, a point that has already faced fierce opposition, mainly from Republicans. The plan is the first part of a likely $ 4 trillion program. On taxes, he clarified that they wouldn’t hit anyone making below $400K a year.
Crude oil prices bounced as OPEC+ reached a deal on a gradual output increase. According to sources familiar with the matter, the increases will be 350,000 bpd in May, 350,000 bpd in June and around 400,000 bpd in July. WTI settled above $ 61.00 a barrel, up from a daily low of 58.84.
Gold advanced on the broad dollar’s weakness, settling at $ 1,728 a troy ounce.
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