The dollar, stocks and oil rise on hopes of stimulus and the decline of the virus

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This is what you need to know to trade today Monday February 8:

Markets are celebrating the growing prospects for strong fiscal stimulus following Washington’s remarks and disappointing NFP Non-Farm Payrolls. The dollar is strengthening alongside rising yields and as oil is heading higher. The drop in coronavirus numbers outweighs concerns about the efficacy of vaccines.

Stimulus: President Joe Biden and Treasury Secretary Janet Yellen have emphasized the need to pass a substantial aid package in interviews over the weekend. Its boost comes after January’s NFP nonfarm payroll figures fell short of estimates with an increase of just 49,000 new jobs. Stocks are rising amid hopes for faster growth.

Some economists fear that excessive stimulus will fuel inflation, and some investors seem to agree, as several indicators show. The bonds are sold, generating higher returns which, in turn, make the US dollar more attractive. Ten-year Treasury yields are approaching 1.20%.

The EUR/USD has dropped from 1.2050, after hitting that level in response to US employment data. Sentix’s investor sentiment indicator for February will be released on Monday.

The prices of the Petroleum They also extend their bullish move, with Brent hitting $ 60 and WTI trading above $ 57 at time of writing. In addition to hopes for stimulus, high levels of compliance among OPEC + members are contributing to the rebound.

Coronavirus cases are on the decline in the US, UK and also in the EU, adding to the positive sentiment as investors appear to ignore concerns that some variants of the disease may be resistant to vaccines. South Africa suspended the launch of the AstraZeneca vaccine after a study examining its effect on the local variant was inconclusive.

Britain’s immunization campaign it continues at full speed, with the country having vaccinated more than 12 million people. Prime Minister Boris Johnson will present a plan to ease the restrictions in late February.

Cryptocurrencies: DogeCoin has reached new highs over the weekend after Tesla founder Elon Musk promoted the relatively dark digital currency. Ethereum has fallen from all-time highs, but remains above $ 1,600, while Bitcoin has reduced its gains and XRP is above $ 0.40.


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