The Dollar was weaker on Wednesday as President Biden announced that he intends to spend 2T on infrastructure and raise corporate tax by 28%. Biden said that his new infrastructure investments will be allocated over an eight-year period, and will help to improve transportation, broadband internet access, manufacturing, elderly care, and clean energy. The President went on to claim that his plan is “going to create the strongest most resilient, innovative economy in the world. It’s not a plan that tinkers around the edges… this is about creating opportunities for everybody.” Before this announcement GBPUSD was able to recover back to 1.38 very briefly, helped by a quarter-end Dollar sell off.
The Euro also had a tough session on Wednesday as COVID-19 infections continue to rise on the old continent. French President Emmanuel Macron outlined new national restrictions yesterday as the country’s health ministry reported 59,038 new cases. France has been a hotspot for the virus, with over 4.6M cases of COVID-19 reported and over 95K deaths since the start of the pandemic. When addressing the French public on Wednesday evening Macron described the situation as “delicate” and claimed that if France doesn’t act quickly to curb the virus “we will lose control”. If more lockdown measures are put in place in Europe it will most certainly have a negative effect on the Euro.
GBPUSD opened Wednesday at 1.3726 and quickly made gains due to a softer Greenback. Despite touching the 1.38 mark the pair was unable to maintain itself at that level and closed the day at 1.3795.
GBPEUR also caught some upside yesterday. The pair opened at 1.1725 and closed at 1.1738.
EURUSD also manged to make rare gains on Wednesday. Starting the day at 1.1707 the pair was able to climb to 1.1751 by the close.