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

Stop losing your money! 
Learn to trade with us!

24/7 signals + Webinars    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD drops below 1.1900 as dollar rebounds amid risk-aversion

EUR/USD is trading below 1.1900, retreating further from two-week highs of 1.1927 amid resurgent haven demand for the US dollar whilst the Treasury yields recover. Concerns about vaccines in Europe outweigh the Fed's dovish message.


GBP/USD struggles around 1.37 on dollar strength, Brexit and covid concerns

GBP/USD is trying to hold onto 1.37, trading near the March lows. The US dollar is rebounding the from dovish Fed-induced blow. Concerns about Britain's vaccine supplies and Brexit-related issues are weighing on sentiment.


XAU/USD trades as a function of yields, bounces at $1730 support

Spot gold (XAU/USD) prices have seen choppy price action this Friday, dropping from Asia Pacific levels in the upper-$1750s to lows around $1730, before recovering back to the mid-$1740s in recent trade. 

Gold News

Cardano’s Alonzo update might catalyze ADA price for 78% upswing

IOHK revealed Alonzo, the next protocol update for the Cardano blockchain. The upgrade will build on top of the recent releases like Mary, Allegra and so on to bring smart contract capabilities. ADA price falters but holds up as buyers eye a 78% bull run to record levels.

Read more

S&P 500: High high and away, it's the running of the bulls as PPI Freezes up

Up up and away as bulls push more record highs in equity markets. In the short term nothing, it appears, is clouding the picture. Or is it! The ten year yield reawakens with a fairly sharp rise back toward 1.7%.

Read more