Not for virtual debates, that's the headline that came out of President Donald Trump's first live interview since he contracted the coronavirus. But markets are less interested in a potential political meeting next week. Many market participants turn their attention to other things.
Now, they are more interested in monitoring the development of federal funds to revive the economy that is reportedly about to be provided. For this, Trump's message sounds more optimistic. This statement from Trump was able to lift the euro.
Trump said that House Speaker Nancy Pelosi wants the deal to be ratified as quickly as possible. The man behind "The Art of the Deal" used the same phrase when negotiating a trade agreement with China. Is it true?
Development of Movements in the Market
The above situation occurred before going to the Phase One agreement. Is Pelosi really willing to compromise or is Trump just expressing his own desire to make a deal? For the market, it's not a big deal. It is not their main attention.
The safe-haven dollar is under pressure in the market at this time. Meanwhile, EUR/USD escaped critical support at 1.1740. However, can the currency pair breakthrough at 1.1780? A wide range of possibilities could happen in the future.
Pelosi will speak with U.S. Treasury Secretary Steven Mnuchin for the fifth time today. Interestingly, many analysts say that there are several reasons that seem to make a deal is difficult enough to reach. What are the reasons for this?
First, Democrats want a $2.2 trillion deal that is considered fairly generous. Still, Republicans will do different things. They are aiming for a small deal. It focuses more on airlines and vetting for all Americans with Trump's signature on them.
Other Reasons That Complicate the Deal
The gap from the above decisions may be too large, at least for today. Therefore the market may be disappointed. Second, Senate Republicans may have reached the conclusion that Trump will lose votes in this year's American presidential election soon.
They will probably move to stick to a long-forgotten principle. It is done to keep the deficit low and focus on more important things like Supreme Court nominations. Other reasons also support this. Third, Dems have no reason to give a reason after Trump's 'own goal' on Tuesday.
It is the moment when he broke off talks with the opposition. It could be that they're going to let him keep fighting. U.S. jobless claims are another reason. Claims are marginally estimated with 840,000 applications. The European Central Bank meeting also paid more attention.
ECB will keep an eye on the Euro
The ECB does not target the value of the euro but will always keep a close eye on it. Overall, the fate of U.S. fiscal stimulus is left, right, and center. Then, after the recent increase, it is possible that the movement will be down later.
The U.S. dollar crept up on Thursday morning in Asia. It is in line with rising expectations for some U.S. spending that is creating sentiment. The U.S. Dollar Index, which tracks the greenback against other major currencies, rose slightly to 93.683.
After surprising markets by halting talks between Democrats and Republicans about the latest stimulus measures, U.S. President Donald Trump said through his Twitter that he would be open for gradual spending measures. However, doubts remain. Specifically about any action that would be passed.
Investor Sentiment Remains High
Investor sentiment also rose with hints about more spending from the U.S. Federal Reserve the moment of its meeting in September. The note was in line with several expectations that the Fed would spend more on fiscal spending than others.
However, some investors will be open to further debate about the Fed's bond-buying program. Fed officials, Eric Rosengren and Raphael Bostic will deliver speeches at a later date. It may provide clues about the Fed's internal debate in the future.
