Senior Democrats abandon backup plan on $15 minimum wage – WaPo

Dhwani Mehta FXStreet

US Senior Democrats are doing away with a backup plan to increase the minimum wage through a corporate tax penalty, after facing numerous challenges in drafting their proposal over the weekend, the Washington Post (WaPo) reports, citing two people familiar with the internal deliberations.

Additional details

“Senior Democrats — including Wyden and Sanders — are walking away from that backup effort.”

“On Thursday, the Senate parliamentarian said that the $15-an-hour minimum wage included in President Biden’s $1.9 trillion stimulus plan was inadmissible under the rules Democrats are using to pass the bill through the Senate.”

“The House on Saturday passed the stimulus bill, including the measure to increase the minimum wage to $15. It’s not clear exactly how the Senate will proceed, although the White House has ruled out overturning the parliamentarian’s ruling.”

Market reaction

The risk-recovery theme remains intact so far this Monday, as the investors cheer the news of the US stimulus passage in the House of Representatives.

The S&P 500 futures rally nearly 1% while the US dollar index correct from weekly tops of 90.97.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD holds losses near 1.1850 as US, China holidays keep trade muted

EUR/USD opens the week on a softer note, trading near 1.1860 during the Asian session on Monday. Activity is likely to remain muted, with United States markets closed for the Presidents’ Day holiday, while Mainland China is also shut for the week-long Lunar New Year break.

GBP/USD flat lines as traders await key UK macro data and FOMC minutes

The GBP/USD pair kicks off a new week on a subdued note and oscillates in a narrow range, just below mid-1.3600s, during the Asian session. Moreover, the mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important releases from the UK and the US.

Gold buyers hesitate amid holiday-thinned trading

Gold trades volatile, but within range, as US, China holidays-led thin trading exaggerates moves. The US Dollar extends range play into the US GDP week, with markets pricing at least two Fed rate cuts this year. Technically, Gold tests key support at $5,000; daily RSI still remains bullish.

Top Crypto Losers: Dogecoin, Zcash, Bonk – Meme and Privacy coins under pressure

Meme coins such as Dogecoin and Bonk, alongside the privacy coin Zcash (ZEC), are leading the broader market losses over the last 24 hours. DOGE, ZEC, and BONK ended their three consecutive days of recovery with a sudden decline on Sunday, as crucial resistance levels capped the gains. Technically, the altcoins show downside risk, starting the week under pressure.

Global inflation watch: Signs of cooling services inflation

Realized inflation landed close to expectations in January, as negative base effects weighed on the annual rates. Remaining sticky inflation is largely explained by services, while tariff-driven goods inflation remains limited even in the US.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.