The EUR/USD pair is displayed a near to zero change on Wednesday, February 3, following the previous day’s update of the two-month low at 1.2011. Around the same time, since the beginning of December, the DXY dollar index has hit its peak value.
The dollar stabilized on the foreign exchange market, with the dollar index falling by 0.08 percent to 91.12 points against a basket of currencies. The euro gave up 0.07 percent to $1.2034 against the greenback. Sovereign yields tightened, with the 10-year T-Bond yield rising 3 basis points to 1.13%.
It can be said that, amid a reasonably strong risk appetite in financial markets, the strengthening of the US currency is taking place. So, this week, stock markets resumed growth, and in the last 10 months, oil prices have hit the highest levels.
Moreover, strong macroeconomic figures were released Tuesday for the eurozone and the United States, which, however, did not deter the purchasing of the dollar.
Thus, on Tuesday, the February data on the IBD/TIPP index of economic confidence released in the United States showed a rise of 51.9 points to the highest value in the last four months. This is possibly attributed to market holders’ assumptions for the early implementation of a $1.9 trillion new stimulus plan for the country’s economy. Markets are still following the progress in the U.S. Senate in addition to corporate results. The Biden administration’s Congress has proposed a $1,900 billion stimulus package. By 50 votes to 49 on Tuesday, the Senate adopted a procedural text that paves the way for the Biden plan to be approved by a simple majority of 51 votes.
This is good news because it would require a two-thirds majority without this procedure, whereas the Democrats in the Senate have only 51 votes. Remember that the upper house is divided by 50/50 votes, but thanks to the vote of Vice President Kamala Harris, Democrats can get a simple majority. A group of Republican senators continues to defend an aid package of $600 billion.