This is what you need to know to trade today Thursday, March 25:
Markets are trying to stabilize after Wednesday’s slide, while the dollar is taking a breather from recent gains. Optimism about an EU-UK solution to the vaccine dispute is offset by a global trade blockage in the Suez Canal. Investors await news on US infrastructure spending plans, while jobless claims and final GDP will draw investors’ attention.
Respite from the dollar: The US dollar has stopped its gains, with EUR / USD holding above 1.18 and GBP / USD consolidating below 1.37. Jerome Powell, Chairman of the Federal Reserve, reiterated his position that inflation is likely to be temporary and that the recovery has a long way to go. Ten-year Treasury yields have exceeded 1.60%.
Tax increase: Joe Manchin, the most centrist Democratic senator, voiced his support for infrastructure spending and higher taxes. Their critical backing may open the door to a bill that can boost the economy but weigh on markets and keep debt yields low. President Joe Biden will present his plans on March 31.
It is expected that unemployment claims in the United States show a decline in the week ending March 19 and gross domestic product is expected to PIB final of the United States for the fourth quarter confirm an annualized growth rate of 4.1%.
See: Preview of Initial US Unemployment Claims: Vaccination and Economic Progress
See: February surprise box preview: Personal income and expenses, underlying PCE prices and GDP
Wednesday’s release of February durable goods orders data disappointed with a substantial drop, but the “deep freeze” storm in some states may have pushed investment lower.
Vaccines: The EU and the UK issued a joint statement saying they are working on a “win-win” solution to the dispute over immunization exports, providing some calm. Bloc leaders meet virtually on Thursday, with the slow vaccination campaign topping the agenda.
Italian authorities have disclosed a reserve of about 29 million doses of AstraZeneca, adding to the controversy surrounding the company. The troubled company updated its efficacy figures for its phase 3 trial in the US to 76%, up from 79% originally reported.
Traffic jam in Suez: A 400-meter-long mega-ship remains trapped in the Suez Canal, blocking trade through the critical waterway and blocking hundreds of ships. A special crew has been called in to help free the ship. Every day that passes adds to the supply chain problems that have gripped the world since the COVID-19 outbreak. Some estimates suggest that it may take six days to free the Canal, but oil prices remain stable at around $ 60 for the WTI.
The US Securities and Exchange Commission. has opened an investigation into Special Purpose Acquisition Companies (SPAC), which has been one of the latest frenzy on Wall Street.
The Bitcoin it is trading around $ 53,000, stabilizing after falling earlier in the week. Other cryptocurrencies are similarly rebounding from their lows.
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