This is what you need to know to trade today Wednesday, March 31:
The US dollar is rising along with yields, ahead of Biden’s critical speech on the economy. Europe continues to fight against viruses and vaccines. Eurozone inflation, ADP employment figures and Canadian GDP stand out on today’s economic calendar.
Infrastructure spending: US President Joe Biden will present a massive $ 2 trillion tax package over eight years, which will likely include spending on classic infrastructure, green initiatives and also investment in human capital. The White House is also considering tax increases over 15 years, but it is unclear whether such a measure would be introduced in the first phase.
Biden’s new plan adds to the covid relief program that has already helped boost consumer confidence.
The oro It has been under immense pressure following the rising yields, falling and staying below $ 1,700.
The ADP private sector jobs report is set to show a jump of more than half a million new jobs in March. The payroll company figures have not correlated well with the official NFP nonfarm payroll figures, but they tend to move the markets.
Settlement: Investors are still trying to understand the magnitude of Archegos’ capitulation. Credit Suisse has been hit hard, but it’s unclear whether the multi-billion hedge fund crash is unique or a “canary in the coal mine” for the entire financial system.
Flows: The last day of the first quarter is also the last day of Japan’s fiscal year and can trigger choppy movements as equity managers struggle to adjust their portfolios. That may explain some of the strong bullish movements in USD / JPY, which is moving towards 111.
The GBP/USD hovers around the region of 1.3750 after the UK’s gross domestic product figures rose to 1.3% growth in the fourth quarter. The British pound continues to benefit from Britain’s successful vaccination campaign.
The EUR/USD is under pressure, trading near 1.17 as the Old Continent continues to struggle with the increase in COVID-19 cases. Germany banned the use of AstraZeneca vaccines for those under the age of 60 after additional cases of blood clots among young women. Eurozone CPI consumer price index figures are expected to show an annual increase of 1.4%. The expected increase in inflation is the result of base effects.
The USD / CAD it is trading around 1.26 as oil prices stabilize following the reopening of the Suez Canal. Canada’s GDP statistics are forecast to show growth in January 2021.
Brazil is suffering an intense wave of coronavirus that has caused a considerable political crisis. The largest nation in South America is responsible for a quarter of global deaths with only 3% of the population. Senior army commanders resigned after the defense minister left, while President Jair Bolsonaro’s management of the disease remains questionable.
The Bitcoin It is trading close to $ 60,000 after PayPal teamed up with Visa to accommodate cryptocurrency. Ethereum is also on the rise, trading above $ 1,800.
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