US President Biden: We are in a tough stretch on covid and it could last for a while

Anil Panchal FXStreet

"Many of us are frustrated with the roughly 80 million Americans who are not vaccinated," said US President Joe Biden while announcing details of his six-pronged strategy on Thursday night.

To placate the fears, Biden also said that the path ahead is not nearly as bad as last winter.

Additional comments (from Reuters)

US has tools to combat the virus if we raise our vaccination rate.

The plan will get more people vaccinated, decrease hospitalizations and deaths, and keep our schools and our economy open.

We can and we will turn the tide on COVID-19.

There are elected officials actively working to undermine the fight against covid-19.

New plan for vaccinations combats those who are blocking public health.

We need to do more on vaccines, this is not about freedom or personal choice.

Asks unvaccinated Americans "what more do you need to see?

TSA (Trasnportation Security Administration) will double fines for travellers who refuse to mask.

There'll be a 35% price reduction for the at-home rapid test kits.

Will announce additional steps this month to help world fight covid.

Parents, please get your teenager vaccinated.

Scientists at FDA and CDC will decide on who should get boosters when.

Our patience is wearing thin.

Fx implications

As Biden refrains from details and any surprises, initial market reaction to his comments could be found as minimal. It’s worth noting that the Wall Street benchmark closed in the red.

Read: US Stocks Forecast: Wall Street drops again although bulls have upper hand

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD gains traction near 0.7100 as the post-Fed USD rally pauses

AUD/USD finds fresh buyers and retakes 0.7100 in the Asian session on Thursday as the US Dollar pauses its hawkish Fed-inspired rally to its highest level since late July. However, RBA rate-hike bets and hopes for US-Iran diplomatic efforts lift risk sentiment and support the risk-sensitive Australian Dollar and the major.

USD/JPY reverses a dip below 156.00 as focus shifts to BoJ

USD/JPY is reversing a brief dip below 156.00 in the Asian session on Thursday, looking to snap a three-day winning streak to a nearly two-week top set the previous day. The US Dollar pauses following the post-Fed rally to seven-week highs, while a more hawkish repricing of the BoJ's policy normalization path supports the Japanese Yen. This keeps the pair's upside limited, with the focus now shifting to the BoJ policy decision due on Friday.

Gold retakes $4,300 amid modest USD pullback but hawkish Fed caps upside

Gold climbs back above the $4,300 mark heading into the European session on Thursday, though it remains within striking distance of a six-week low touched the previous day. The US Dollar eases after touching a fresh high since late July and offers some support to the commodity. However, the Fed's hawkish outlook, along with escalating Middle East tensions, should continue to underpin the safe-haven and cap the non-yielding bullion.

XRP and XLM rebound amid mixed signals

Ripple (XRP) and Stellar (XLM) extend their recovery at the time of writing on Thursday after finding support at key technical levels. However, mixed derivatives and on-chain data for both altcoins suggest that traders remain cautious and have yet to show strong conviction in a sustained rebound. Derivatives data shows a mixed and cautious outlook among traders.

BoE expected to hold interest rate at 3.75%

The Bank of England (BoE) is set to reveal its latest monetary policy decision on Thursday, coinciding with its sixth rate-setting meeting of 2026. Market analysts expect the central bank to keep its benchmark interest rate steady at 3.75%, which should be its sixth hold in a row following December’s 25-bps rate cut.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.