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Dollar Bounces Back As Markets Follow Stimulus Plan

On Thursday, the dollar rebounded on the foreign exchange market, with the dollar index advancing 0.41 percent versus a basket of currencies to 91.55 points. The euro dropped 0.6 percent to $1.1963 versus the greenback. Sovereign yields have stabilized, with the 10-year T-Bond yield rising 1 basis point at 1.14 percent.

Markets continue to pursue the process of accepting the stimulus plan of $1,900 billion from Joe Biden. According to the Wall Street Journal, with Republican opposition hesitant to back any of the plan’s expenditures, the U.S. president will now be able to agree the federal assistance of $1,400 per U.S. household would be subject to more stringent income terms.

By 50 votes to 49 on Tuesday, the Senate introduced a procedural text that paves the way for the Biden bill to be approved by a clear majority of 51 votes. This is good news since a two-thirds majority will be needed without this process, while Democrats have at least 51 votes out of 100 in the Senate.

Stock markets investors are now closely watching the results of the GameStop situation, with a meeting held on Thursday by Treasury Secretary Janet Yellen and financial regulators to discuss the latest “market volatility.” Representatives of the Securities and Exchange Commission (SEC) and the Federal Reserve and Commodity Futures Trading Commission (CFTC) will convene at the conference. The former Fed manager said in an interview with ABC that she wanted to “understand in detail” the stock market frenzy of the past few days before taking further action.

The House of Representatives, for its part, will hold a hearing on February 18 on the protagonists of the lawsuit, including the Robinhood smartphone trader, the Reddit social network, GameStop, and hedge funds.

The figures made public by the U.S. government on the U.S. economy on Thursday seem to reflect despite constraints resulting from the Covid-19 pandemic the strength of the United States economy.

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