The US Will Provide $500 billion in Payments to Americans

Yesterday, the US dollar strengthened again relative to a basket of major currencies. The dollar index (#DX) closed in the green zone (+2.03%). At the moment, currency majors are stable. The sentiment of financial market participants improved slightly amid global support measures by central banks. US authorities plan to direct $500 billion in payments to citizens as part of a large-scale stimulus bill that should support the US economy during a pandemic. Over the next three weeks, citizens should receive payments. The government plans to direct payments of $1 thousand per adult and $500 per child. If the crisis does not end after six weeks, the US government may repeat payments to citizens in the same amount.

The Bank of England urgently lowered its base interest rate by 0.15 percentage points again during a special meeting on Thursday – from 0.25% to 0.1%. The regulator also decided to increase the volume of the government bond-buying program by £200 billion to £645 billion. At the moment, GBP/USD quotes have been recovering.

The "black gold" prices have started growing after US President Donald Trump threatened to intervene in the oil price war between Saudi Arabia and Russia at an "appropriate time." Currently, futures for the WTI crude oil are testing the $27.85 mark per barrel. At 19:00 (GMT+2:00), Baker Hughes US rig count will be published.

Market indicators

Yesterday, there was the bullish sentiment in the US stock market: #SPY (+0.21%), #DIA (+0.96%), #QQQ (+0.60%).

The 10-year US government bonds yield has fallen again. At the moment, the indicator is at the level of 1.02-1.03%.

• - Data on retail sales in Canada at 14:30 (GMT+2:00);
• - Existing home sales in the US at 14:30 (GMT+2:00).

by JMarkets, 2020.03.20

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.