Biden’s $1.9tln stimulus unlikely to support the US dollar

Analysts at Credit Agricole in Hong Kong in a response to Biden’s plans announced earlier.

  • stimulus package underwhelmed the market
  • provided a little support for the USD and yen
  • But longer term, “the package does not likely encourage further Treasury yield rises and a stronger dollar”
  • package will struggle to get past the filibuster and could end up smaller than the proposed $1.9 trillion
CA also weave in Powell’s comments Thursday (US time):
  • “Powell continues to exercise flexibility around the Fed’s inflation overshoot commitment in terms of not committing to any formulas. He also cooled talk about taper”