The US Senate finally passed the $2 trillion stimulus bill to mitigate the impact of coronavirus, and the House will soon take it. However, the market’s enthusiasm has faded away. The move is partly a “buy the rumor, sell the fact” reaction but also the details of the package, which include a significant chunk of loans rather than grants.
The euro and yen are – whose economies have current account surpluses – are gaining ground against the greenback while the dollar is beating the pound and commodity currencies. The present action in money is a break from the “dollar vs. everything” trade that has been seen earlier as there seems to be no distress.
Coronavirus has taken the lives of over 21,000 and has infected around 470,000. Spain suffered its grimmest day with 738 deaths, while the signs of “flattening the curve” are seen in Italy, where the number of new infections has stabilized. US cases near 70,000, yet New York City is somewhat optimistic. The Japanese government is considering adding restrictions amid an increase in cases.
EUR/JPY SHORT (Sell)
ENTER AT: 120.76