Forex Today: Senate strikes stimulus, stocks may sell the fact, dollar pressured, coronavirus data eyed

Here is what you need to know on Wednesday, March 25:

The market mood remains upbeat as the US Senate reached a deal on a $2 trillion stimulus package after around-the-clock talks. Stocks remain bid after staging the strongest rally since 1933 on Tuesday. American politicians are getting their act together as the number of domestic cases topped 55,000 and the World Health Organization said the world's largest economy is set to be the next epicenter of the disease. 

The agreement includes cheques to most Americans, aid to small businesses, unemployment insurance, tax deference, and more. The bill is set to turn into law by the end of the week. Some of the funding comes from the Federal Reserve's unlimited Quantitative Easing program announced on Monday.

While Asian stocks are on the rise, S&P futures are on the back foot, potentially pointing to a "sell-the-fact" reaction to the stimulus deal.

See When will the Corona market end? Or has it already?

President Donald Trump said he wants to see the lockdowns removed by Easter, in around three weeks' time, while state and local officials are adding restrictions to curb the spread of Covid-19. 

Preliminary Purchasing Managers' Indexes from the US, the UK, and the eurozone plunged in services sector activity while manufacturing is holding up due to quirk in the calculation, counting delays as a positive factor. 

Commodity currencies are the most significant beneficiaries on Wednesday, with AUD/USD recapturing 0.60 and NZD/USD also advancing despite a nationwide lockdown. USD/CAD has dropped below 1.44 as WTI Crude Oil closes on $25. Crude oil inventories are eyed.

Another winner is GBP/USD which is trading well over 1.18, which is extending its recovery as Brits get used to their lockdown. UK inflation figures for February will likely be ignored by markets as it predates the crisis.

EUR/USD is hovering around 1.08, relatively stable after Italy reported a rise in the number of deaths and Spain's number of mortalities continues rising quickly. Epidemiologists want to see the curve flattening. The final German IFO Business Climate for March is set to confirm a sharp drop in confidence. 

India has joined the long list of countries imposing lockdowns, ordering around 1.3 billion people to stay at home. 

Gold is battling $1,600 after breaking above the round number on Tuesday. The precious metal is benefiting from the Fed's figures.

US Durable Goods Orders for February are forecast to show falls, but the pre-crisis figures will likely be overlooked in favor of updated coronavirus figures from all over the world. Over 400,000 people have been infected and nearly 19,000 have died all over the world.

Cryptocurrencies have been consolidating their gains, trading above $6,500. 

More Have stocks bottomed out? Not yet, wait for these three coronavirus-related developments

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.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News

Editors’ Picks

AUD/USD holds onto recovery gains above 0.6050, RBA eyed

AUD/USD stays within the two-hour-old 0.6080-6100 range, currently around 0.6090, while stepping forward for Tuesday’s Asian session. In doing so, the pair holds onto Monday’s recovery gains, mainly due to slightly positive coronavirus (COVID-19) data from Europe, ahead of the key RBA meeting.


USD/JPY: Mildly bid above 109 amid mixed sentiment

Having benefited from the recovery in virus data from global hot-spot, while marking a three-day winning streak on Monday, USD/JPY buyers seem to catch a breath around 109.25 amid the early Asian session on Tuesday.


Gold: Refreshes four-week high, $1,685 on bulls’ radar

Gold prices remain on the front foot while taking the bids near $1,668, up 0.70%, amid the Asian session on Tuesday. In doing so, the bullion refreshes the four-week high with an intraday peak of $1,674.15 while also marking a fifth consecutive daily gain.

Gold News

WTI snaps three-day winning streak

WTI oil fell by over 8% on Monday, ending a three-day winning streak, which saw prices rise from $19.94 to $29.11. The black gold fell as Saudi Arabia and Russia's decision to delay an emergency meeting to discuss output cuts shifted focus back to oversupply concerns.

Oil News

Johnson Hospitalised, Oil Awaits Treatment

Sterling slipped after UK Prime Minister Boris Johnson was moved to the intensive care unit for coronavirus treatment, but the broad risk trade remained strong on optimism with slowing growth in the number of Corona virus cases. 

Read more