Greenback Loses Ground Ahead Of Weekend Break
After a strong week, the Greenback is limping toward the finish line. With only a few hours left until the Friday closing bell, the big movers have been the EUR/USD (+0.66%), GBP/USD (+0.44%), USD/CAD (-0.44%), and USD/CHF (-0.47%). Despite this morning’s decent NFP numbers and decline in U.S. unemployment, COVID-19 stimulus is the key market driver.
A bit earlier, U.S. President Joe Biden issued a few public comments on the state of COVID-19 stimulus. Here are the key quotes from Biden’s presser:
- “It is very clear our economy is still in trouble.”
- “I see enormous pain in this country. A lot of folks out of work. A lot of folks going hungry.”
- “I’m going to help the American people who are hurting now. What Republicans have proposed is either to do nothing or not enough.”
- “I’m not cutting the size of the checks. They’re going to be $1400. Period.”
Over the past year, promises of government stimulus have consistently shaken the USD. And, it appears to be only a matter of time before hundreds of billions in direct stimulus are directed at U.S. citizens. Another boost in the money supply has forex players bailing out of the Greenback.
Greenback Fades Ahead Of Weekend Break
In a Live Market Update from Thursday, I issued a buy recommendation in the EUR/USD. The trade turned out to be an easy winner, cashing in for 40 pips.
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Overview: It’s no secret that the USD is in for a rough ride in 2021. Unlimited FED QE and government stimulus packages are likely to pressure the Greenback throughout the calendar year. However, if we see a full COVID-19 reopen this spring, things may change. Of course, that is a tremendously big “if.”
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