3% +(-) days in indices are becoming rarer by the day as authorities do their utmost to keep some sort of normalcy...in the markets. If reopening the economy is considered to be a near equivalent to monetary easing, then what would it be if the $2.2 trillion stimulus package voted on by the House of Representatives is passed by the Senate? US Treasury Secretary Mnuchin appears confident it will pass, saying “there is a strong likelihood we will need another bill”. The Fed certainly agrees. Meanwhile, Monday's announcement by Germany and France to announce a €500bn EU recovery fund, coincided with the EURUSD's jump on the same day. As much as these developments are considered to be positive for the markets, given the macro realities of 20%-bound unemployment rates, the US and EU stimulus policies are just enough to prevent indices from breaking key support levels (2740s SPX and 23000 DOW30) and US 10-year yield resistance of 0.76%. That is not stopping traders from forcing the issue (more below).

The pound reversed an early gain on Wednesday after the BOE said it would ponder negative rates. GBP lagged on the day while the kiwi led for the second day. The day ahead features several key US sentiment surveys and weekly initial jobless claims.The pound gave back gains after BoE governor Bailey said negative rates were under "active review", making him the 2nd official to open the possibility on the subject, less than one week after he struck down the idea.  Cable had traded as high as 1.2285 and pulled back 55 pips in the aftermath. EUR/GBP rose. After 6 weeks of false breaks and hesitancy, the EURGBP Premium long finally broke out intermediate resistance --currently 150-pips in the green. The Premium video below focuses on metals and indices.