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The Federal Reserve and U.S. Government opened up the floodgates to historic stimulus measures, sinking the Greenback in the process as U.S. dollar funding fears fade, as well as on the odds of a global economic meltdown pulled back.
United States Headlines and Economic data
Monday:
- The Federal Reserve just pledged asset purchases with no limit to support markets
- Kashkari to Congress: Err on being generous
- Senate fails to advance coronavirus stimulus package
- Early pop higher for the Greenback against the comdolls on Monday, likely due to the continued negative risk sentiment fueled by the ongoing coronavirus pandemic and likely economic damage to the global economy. It’s also likely the the failure of the stimulus bill to pass the U.S. Senate added to market fears.
- It was a quick turn around in sentiment, though, during the U.S. session towards positive, likely sparked by the pledge made by the Fed, adding to the news of major stimulus moves from the Reserve Bank of New Zealand and Reserve Bank of Australia announced during the Asia session. The Greenback took a turn lower at the end of the U.S. trading session.
Tuesday:
-
Flash U.S. Services Business Activity Index at 39.1 (49.4 in Feb); Flash U.S. Manufacturing PMI at 49.2 (50.7 in
Feb) - Richmond Fed Manufacturing Activity rose from −2 in February to 2 in March
- U.S. new home sales fall; January revised sharply up
- Philly Fed non-manufacturing survey fell sharply from 36.1 in February to -12.8 in March
- Positive global risk sentiment was on the rise through Wednesday to add to fading USD strength, likely on the continued stream of stimulus pledges from governments and central banks (e.g., ECB Intends to Be Major Buyer in Commercial Player Market, Canada doubles value of coronavirus stimulus package, etc.) to shield the world from an economic meltdown.
Wednesday:
- White House and Senate strike a deal on historic $2 trillion coronavirus stimulus bill
- Trump, White House tell Wall Street execs lockdown may last beyond Easter
- White House not considering three-month tariff deferral, top trade advisor Peter Navarro says
- U.S. durable goods orders increase solidly before coronavirus
- FHFA House Price Index Up 0.3% in January; Up 5.2% from Last Year
- U.S. Senate passes $2T disaster aid bill
- USD selling accelerated on Thursday thanks to a mix of the news above combined with more news of stimulus measures from around the world to support the global economy (e.g., ECB shakes off limits on new €750bn bond buying plan, U.S. Senate passes $2T disaster aid bill, South Korea to relax FX liquidity rules for banks, India cuts rates & unleashes $50B in stimulus, etc.)
Thursday:
- Jobless claims soar past 3 million to record as coronavirus sends Americans to the unemployment line
- Fed’s Bullard: U.S. economy might see ‘boom’ by autumn after ‘unprecedented’ weakness in second quarter
- Powell on whether the Fed has enough firepower: ‘We’re not going to run out of ammunition’
- Coronavirus stimulus checks will come within three weeks, Mnuchin says
- We saw a continued rise in global risk sentiment, once again on more news of stimulus measures to support the global economy (e.g., ECB shakes off limits on new €750bn bond buying plan, U.S. Senate passes $2T disaster aid bill, South Korea to relax FX liquidity rules for banks, India cuts rates & unleashes $50B in stimulus, etc.)
Friday:
- Fed balance sheet tops $5T on bond-buying and loan extensions
- U.S. Consumer Sentiment Near Three-And-a-Half-Year Low, Spending Tepid
- Consumer prices as measured by the personal consumption expenditures (PCE) price index excluding the volatile food and energy components rose 0.2% for a third straight month in February
- Fed’s Bostic Says Central Bank Remains Ready to Add Support if Needed
- U.S. Personal Income Climbs More Than Expected In February
- Trump signs historic $2 trillion stimulus after Congress passes it Friday