Fed Boosts Stock Markets, Pushing Dollar Lower, Spotlight on Jobless Claims and Powell’s Speech

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This is what you need to know to trade today Thursday, April 8:

Market sentiment remains positive after Fed minutes pointed to continued support from the economy and before President Powell’s speech. AstraZeneca vaccine safety concerns are weighing on the euro and the British pound. Cryptocurrencies have fallen from their highs. The focus is on jobless claims in the United States.

The FOMC meeting minutes they echoed the central bank’s cautious approach to its monetary policy despite acknowledging the rapid recovery in the United States. Bond purchases are unlikely to be curtailed anytime soon, which is music to investors’ ears. The S&P 500 expanded its gains in response. Federal Reserve Chairman Jerome Powell will speak later in the day.

Taxes: Treasury Secretary Janet Yellen presented a detailed program to increase corporate taxes to fund the administration’s infrastructure spending plans. Republicans continue to oppose any increase. President Joe Biden is ready to double down on America’s commitment to reducing carbon emissions, setting it at 50% by 2030.

Vaccines: Regulators in the UK and the EU have concluded that there is a link between the AstraZeneca vaccine and rare cases of blood clots. The UK recommended refraining from using the company’s vaccines in those under 30, while the bloc has yet to decide on a uniform response. Development can delay recovery.

The EUR/USD it falls back from 1.19 amid these concerns regarding AstraZeneca and ahead of the release of the minutes of the European Central Bank meeting, which will likely echo the ECB’s commitment to keep long-term interest rates low. Phillip Lane, the bank’s chief economists, said favorable financing conditions should be maintained.

It is anticipated that Unemployment claims in the United States show a retracement below 700,000 after breaking above that level last week. The NFP nonfarm payroll and job vacancy figures from JOLTs pointed to a robust job market.

See: Preview of Initial US Unemployment Claims: Moving on Parallel Tracks

Cryptocurrencies: Bitcoin is trading below $ 57,000 while Ethereum is struggling above $ 2,000. Other digital assets are also retreating from their highs.

Crude oil WTI around $ 60.00 and oro the $ 1,740, both with little change.

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