While record top of S&P 500 and DJI30 recently portrayed market optimism, mixed clues afterward seem to test the bulls ahead of the key speech by US President Joe Biden, up for publishing at 01:00 AM GMT on Friday.
Read: Wall Street Close: All-time highs for stocks as Biden’s $1.9T “rescue” package signed into law
The Democratic Party member, ex-Vice President, finally signed his much-awaited $1.9 trillion covid stimulus and propelled equities, not to forget weighing on the US dollar index (DXY).
The mood got extra favor after the rumors spread that US President Biden is up for proposing around $2.5 trillion infrastructure spending during April-May.
Also favoring the upbeat market sentiment off-late could be comments from Novavax, shared via Reuters, suggesting 96.4% effectiveness in preventing the original version of the coronavirus (COVID-19) traced to the United Kingdom. The official update also mentioned, “The vaccine was also about 86% effective in protecting against the more contagious virus variant first discovered and now prevalent in the UK.”
On the contrary, Bloomberg’s news that the Biden administration has informed some suppliers to China’s Huawei Technologies Co. of tighter conditions on previously approved export licenses, prohibiting items for use in or with 5G devices, probes the risks.
FX implications
Global markets currently await the first prime-time address of US President Joe Biden amid concerns of more stimulus hints. The American leader is up for commemorating the first US virus-led lockdown after a year but may choose to praise policymakers’ support for passage of the latest stimulus. Hence, risks can get an additional boost on the upbeat comments, which in turn favor AUD/USD and gold. However, any surprises won’t be taken lightly.
Read: AUD/USD: Bulls attack 0.7800 amid risk-on mood, US dollar weakness
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