It was a significant day out of the US as President Biden’s proposed Rescue Plan was put into action as he signed the bill to put the $1.9 trillion stimulus bill into action. The stimulus bill did bring a bit of stability to the Dollar following its weakness this week, following Biden’s public address the Dollar firmed up against the Euro retracing down to 1.1962 from its daily high of 1.1990. The ECB announced that they will keep interest rates at 0%, whoever the focus was on inflation and the Pandemic Emergency Purchase Programme that is expected to be conducted at a significantly higher pace than the first quarter of the year. Inflation remains the Major risk to the economy, with the ECB still aiming to keep inflation under 2% for 2021. The Euro is currently still strengthening against the NZD, JPY as well as the CHF.
The stimulus bill out of the US pushed positivity into the market as the Nasdaq made significant gains to close the day above 13000, Dow made a new all time high on 32 664, S&P rallied well during the day reaching its previous high before closing the day on 3937.
The Commodity was mixed as Gold breached the 1720 level following Biden’s address of the nation as vaccine rollouts are set to be fast tracked to supercharge economic recovery. Brent pushed up well closing the day on 69.22 following its daily high of 69.50.
Bitcoin made a new all time high, breaching the 58 000 continuing its rally as the alternative asset gains on the more traditional safe haven asset classes.
Keep an eye out for Canadian Unemployment released this afternoon at 3:30pm (SAST)
3:30pm - Employment Change (CAD)
3:30pm - Unemployment Rate (CAD)