Here’s what you need to know on Thursday, April 8th:
Market sentiment remains positive after Fed minutes indicated continued support and ahead of Chairman Powell’s speech. Concerns over the safety of AstraZeneca vaccines weigh on the euro and the pound sterling. Cryptocurrencies have dropped from their highs. US unemployment claims are under scrutiny.
AT FOMC Meeting Minutes reiterated the bank’s cautious approach to its policies, despite acknowledging America’s rapid recovery. The decline in bond purchases is unlikely to happen anytime soon, this is music to the ears of investors. In response, the S&P 500 continued to rise. Federal Reserve Chairman Jerome Powell is set to speak later that day.
Tax: Treasury Secretary Janet Yellen outlined a detailed corporate tax increase program to fund the administration’s infrastructure spending plans. Republicans continue to oppose any raise. President Joe Biden intends to double America’s carbon reduction commitments to 50% by 2030.
Vaccine: UK and EU regulators have concluded there is a link between AstraZeneca shots and rare cases of blood clots. The UK recommended refraining from vaccinating firms under the age of 30, while the bloc has yet to decide on a uniform response. Development can delay recovery.
EUR / USD below 1.19 amid these concerns, AZ and awaits the minutes of the ECB meeting, which is likely to reflect the ECB’s commitment to keeping long-term interest rates low. Philip Lane, the bank’s chief economist, said there was a need to maintain favorable financing conditions.
US Unemployment Claims must show that the number of applications fell below 700,000 after they surpassed this level last week. Nonfarm payrolls and JOLT data indicate a robust labor market.
See Preview of Initial US Unemployment Claims: Parallel Paths
Cryptocurrencies: Bitcoin is trading below $ 57,000, while Ethereum is struggling just above $ 2,000. Other digital assets are also below their highs.
WTI oil costs about $ 60 and gold hovers around $ 1,740, both of which have changed little.