Markets React to New US COVID-19 Relief Stimulus Bill

US President Donald Trump has signed the massive 2.3 trillion USD COVID-19 relief stimulus bill, in an attempt to save off partial government shutdown.

The bill that includes 600 USD stimulus checks will aid individuals and businesses through various ways including a forgivable loan program for small businesses, 300 USD weekly unemployment supplements, 600 USD child stimulus payments and more.

Following this news, S&P 500 futures broke through the 3,700 threshold and closed at 3,710, which is a 0.3% increase. As a result, the AUD increased, closing at 0.7605, which is a jump of 10 pips from its previous position of 0.7590.

The US dollar index, which indicates the value of the US dollar against all major currencies in the global market, has gone down from 90.35 to 90.19. A monthly high of 92.02 can be expected if the bulls manage to break the 90.83 mark.

On the other hand, gold reacted positively to the President’s decision and gained 1% inching towards the 1,900 USD hurdle.

It’s still uncertain if the stimulus package will be sufficient to sustain the positive signs that are seen in the market.