US House has thevotes to pass budget plan, fast-tracking Biden's $1.9tln covid relief package

Ross J Burland FXStreet

Reuters reported that ''the Democratic-controlled US House of Representatives approved a budget outline on Wednesday that would allow them to pass President Joe Biden's proposed $1.9 trillion coronavirus aid plan without Republican support.''

The news company explained that the budget plan will enable ''Democrats to pass the package with a simple 51-vote majority in the Senate, rather than the 60 votes needed to advance most legislation in the 100-seat chamber. That would allow them to pass the bill even if all 50 Republicans oppose it.

The Senate has yet to vote on the plan.''

Market implications

Risk-on has been the overnight theme starting in the European session where politics there offered a positive twist from the news that Mario Draghi accepted the position of Prime Minister.

The combination of this and now the US progress in Congress is sure to keep spirits up into the end of the week's economic data showdown in the form of the Nonfarm Payrolls data.

The US dollar is attracting a bid on better than expected data of late, but it may find itself up against the wall if the package is perceived overkill in the markets.

DXY daily chart

The US dollar is pressing against a strong area of resistance which may see a correction back towards the prior structure.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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