The dollar retreats as markets receive March with optimism, PMI data in focus

This is what you need to know to trade today Monday, March 1:

Markets started March on a positive note after inflation fears in late February triggered a drop in bonds and boosted the dollar. Investors are on the lookout for President Biden’s stimulus package, which is poised for a battle in the Senate. Manufacturing PMIs will be in the spotlight today amid overheating fears.

Risk appetite: Stock markets are rising and bond yields are retreating – 10-year US Treasury yields are around 1.40% at the time of writing. The upbeat mood is weighing on the safe-haven dollar, with EUR / USD rallying towards 1.21 and GBP / USD flirting with 1.40.

Stimulus: The US House of Representatives approved President Joe Biden’s $ 1.9 trillion coronavirus aid package, which is now moving to the Senate. Democrats have a tighter majority in the upper house and a ruling against including a minimum wage increase complicates passage. The markets are waiting for a reduced version to be approved.

Both Biden and Treasury Secretary Janet Yellen urged Congress to pass the bill quickly. Higher spending could drive yields and the dollar higher, while a modest one would trigger the opposite move.

The Reserve Bank of Australia it again intervened in the markets through government bonds to keep rates low in the long term. AUD / USD continues to rise amid optimism, changing hands near 0.78. The European Central Bank publishes its weekly report on debt purchases later in the day amid comments from officials to intervene and drive yields lower.

The oro it is trying to rebound, bouncing off $ 1,750 after giving ground last week amid rising bond yields.

Lael Brainard, Governor of the Federal Reserve, and John Williams, Chairman of the New York branch of the world’s most powerful central bank, will speak later that day. President Jerome Powell’s testimony last week served to temporarily calm investors who fear the Fed could raise rates. Powell is scheduled to speak Thursday.

The China Purchasing Managers Indices They were somewhat disappointing in the estimates, but experts cautioned that the data is skewed due to the Lunar New Year and restrictions related to COVID-19. Final manufacturing PMIs are released in Europe and the UK, while the main release for the remainder of the day will be the ISM Manufacturing PMI. The post serves as the first indicator ahead of Friday’s Non-Farm Payrolls.

Vaccines: The US FDA approved the Johnson and Johnson single-dose covid vaccine and the first vaccines are due to be administered in the next few days. America’s immunization campaign has recovered once again, after a slowdown related to the ice storm.

The Bitcoin he has been recovering Monday after extending his descent over the weekend. Cryptocurrencies have been under pressure after a strong bullish move in mid-February.