- Analytics
- News and Tools
- Market News
- U.S. dollar to remain on the back foot - MUFG
U.S. dollar to remain on the back foot - MUFG
FXStreet notes that President-elect Joe Biden’s fiscal plan, announced in Delaware yesterday, is large at $1.9 trillion and triggered a jump in the UST bond 10-year yield of about 4bps but much of that move has already been reversed. Biden’s fiscal plan is large but the market scepticism is justified, according to eceonomists at MUFG Bank who expect the U.S. dollar to continue the downtrend despite a short-term strength.
- “The reality is that while the Democrats now have increased power having won the run-off elections in Georgia last week, that power still has its limits and the details of the fiscal package suggest the overall size will be whittled down before it gets the support required to get through the Senate.”
- “The drop in the UST bond 10-year yield indicates expectations of a paring back of this plan, which to us looks understandable. However, Biden has a long history of achieving compromise and there are certainly risks of surprise and this fiscal plan could still end up larger than the markets currently assume."
- “While short-term, the US dollar could extend further, the big picture backdrop for the dollar remains negative. Fed rhetoric and even a watered-down Biden fiscal plan underline the negative backdrop that lies ahead.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
