US equity indices are down yet again on Thursday, and the main benchmarks are sliding 0.5% during the EU session. Moreover, indices are down for 7-8 consecutive days, which is rather unusual.
Late on Wednesday, Trump criticized Democrats for their inability to compromise over the size of the stimulus. That looks like another stale-mate, and the fiscal stimulus might not be approved till the elections after all.
While Trump had previously said he was willing to accept a larger aid bill, it was clear that there was also deep opposition among Senate Republicans to such a massive stimulus bill amid worries that it could hurt their November election prospects by adding to rapidly rising budget deficits.
The greenback was flat against its major peers at the time of writing – with the EURUSD pair spotted near 1.1850, cable was at around 1.3150, and the USDJPY pair hovered near 104.50.
Metals were correcting yesterday’s gains, and they also lack a clear trend. However, it looks like bulls will prevail in the end.
Traders will now focus on today’s US data, including jobless claims and existing home sales.