Joe Biden unveiled a huge stimulus plan on Thursday and the next step will be to watch how lawmakers react to it. USD pushes back up as yields are immobile, while the reflation trade gets hit as Biden's $1.9 trillion plan is likely to be watered down by lawmakers. Below are some of
the trades to fade yesterday's EURUSD bounce and re-enter XAUUSD shorts for our
WhatsApp BroadCast Group members.
Although I am not sure if we will reach new lows, but i would expect the market to tank again before new highs in the longer run will be reached.
+ dollar to gain strength when ISM keeps dropping
+ dollar denominated debt increasing dollar demand
+ important for euro to drop in value to loosen financial and credit conditions domestically
+ dollar = safe haven