What you need to know on Friday, April 2:
The dollar was slightly down against all of its major rivals as US Treasury yields were in retreat mode. The yield on the benchmark 10-year Treasury bond fell to 1.67%, 10 basis points below the multi-month high reached earlier this week.
Rivals to the dollar were unable to take advantage of its broad weakness. The pound was the best performer, flirting with weekly highs in the 1.3850 region before pulling back a bit. The loonie was also higher against the dollar, aided in U.S. trading hours by rising oil prices.
US President Joe Biden announced a $ 2.3 trillion spending program to address the effects of the pandemic on economic growth, focused on infrastructure and climate change. His proposal includes raising taxes on businesses, a point that has already faced fierce opposition, mainly from Republicans. The plan is the first part of a likely $ 4 trillion program. Regarding taxes, he clarified that they would not affect anyone who earns less than $ 400,000 a year.
Crude prices recovered when OPEC + reached an agreement on a gradual increase in production. According to sources familiar with the matter, the increases will be 350,000 bpd in May, 350,000 bpd in June and around 400,000 bpd in July. The WTI closed above $ 61.00 a barrel, from a daily low of 58.84.
Gold advanced due to the weakness of the dollar in general and settled at $ 1,728 a troy ounce.
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