Forex Today: Trump Signs Corona Relief Bill

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on December 28, 2020

Trump signs new economic stimulus bill into law.

  • After an initial refusal to do so, President Trump has signed into law the coronavirus relief bill passed by Congress last week. The bill has been widely criticized for providing only a one-off payment $600 to each American although it does ensure unemployment relief payments continue. Stocks and riskier assets are higher as markets reopen on the news.

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  • Most major currencies are in strong, long-term bullish trends against the U.S. dollar, and close to multi-year high prices. These trends are now reasserting themselves, with the dollar clearly the weakest major currency, while the euro and Australian dollar look strong.
  • The British Parliament will vote on the Brexit trade deal agreed last week with the E.U. this Wednesday. It is almost certain to be passed. Interestingly, the British pound has reacted little to the news.
  • The Bank of Japan’s meeting minutes released yesterday show policymakers are divided on how to manage its stimulus program as fears of deflationary effects of the coronavirus pandemic loom.
  • It is a public holiday in the U.K. and Canada today. Market liquidity is likely to be very thin until New York opens for business later.
  • Last week was the first in a while when daily reported new coronavirus cases and deaths did not reach a new all-time high globally, raising some hope that the rate of exponential spread of the virus may be slackening.
  • Global coronavirus deaths have increased dramatically since early October to reach a level approximately 70% higher than the peak last April. Coronavirus new cases and deaths seem to be plateauing or falling somewhat in both the European Union and in the U.S.A. The U.S.A. is currently confirming an average of more than 200,000 new cases daily and more than 2,200 deaths per day.
  • Total confirmed new coronavirus cases worldwide stand at over 80.7 million with an average case fatality rate of 2.18%.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Bahrain, Belarus, Bhutan, Bolivia, Burkina Faso, Chile, Colombia, Cuba, Czech Republic, Dominican Republic, Egypt, Estonia, Indonesia, Ireland, Israel, Japan, South Korea, Latvia, Lebanon, Liechtenstein, Lithuania, Malaysia, Mali, Montenegro, Nigeria, Norway, Panama, Russia, Senegal, Thailand, Tunisia, the U.K., the U.A.E., and Uruguay.

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