Quiet Buck as Markets Take News of Spending Bill
AUGUST 11, 2021
The U.S. Dollar is trending quietly as is the rest of the global market as mid-Summer vibes seem the priority while we deal with ongoing infections around the world.
A major step for the White House’s big agenda was taken yesterday after the Senate successfully passed a $3.5-trillion infrastructure framework. The bill will now go to the House where President Biden is hoping Democrats agree on priorities for spending and doling out funds. Thus far, traders and investors are taking the news as something expected since we have been waiting for negotiations to produce something.
This morning’s release of July Consumer Price Index figures revealed things mostly fell as expected as some prices cooled off a bit, particularly large items such as automobiles and homes. June’s 0.9% fell to 0.5% while the yearly average also tumbled from 4.5% to 4.3%. Transitory or not, expect arguments to be made for both tapering and leaving alone the environment. We shall see how this plan to spend falls into place and if anything else out there will have any significant impact. Equities are mostly flat for now.
What to Watch Today…
- No major economic events are scheduled for today
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The Euro remains in weaker ranges as the Euro-zone economy seems to be worrying business leaders and some policymakers. Recent expectations surveys are suggesting that many are starting to worry that the economy is peaking and yet the continent is coping with safety measures that could indeed slow things down as in 2020. While most things are quiet on the other side of the Atlantic, we will see if anything comes from political tension over elections in Germany coming up for September.
The British Pound is weakening as the situation in the U.K. is once again pointing at difficulties over post-Brexit transport and COVID. Yesterday, COVID-related deaths hit a five-month high. Additionally, there is less traveling as everyone is worried about infections rising. When it comes to trade with the EU, the U.K. is preparing its truckers for some potential disruption ahead as they cross over to France.