1. New U.S. stimulus bill to be passed by Wednesday morning
2. Japan's GDP recovery slows
3. Yield on 10-year government bonds is declining
Speaker of the House of Representatives of the US Congress Nancy Pelosi said that the bill on a new fiscal stimulus for the economy worth $1.9 trillion should be approved by the House of Representatives by Wednesday morning. Recall that on Saturday by a majority vote (50 against 49) the bill was approved by the US Senate.
USD/JPY is trading today with a decline of more than 0.35%. One of the factors of pressure on the yen was the macroeconomic statistics published today from Japan. According to the report, Japan's GDP recovery slowed in the 4th quarter. Annual growth was 11.7%, against the forecast of 12.7% and 22.9% in the 3rd quarter. Quarterly GDP growth was 2.8% against a forecast of 3.0%. Below market expectations were also household spending data. The annual index was -6.1%, against the forecast of -2.1%.
The dollar index is gradually declining after setting a new high in almost 3.5 months of trading. The situation in the debt market is exerting moderate pressure on the US currency. After rising above 1.6%, the yield curve of 10-year US government bonds turned down. Now the yield is at 1.568%. Thus, the market is responding to reports that the House hopes to pass a bill on a new stimulus package before Wednesday.
News to pay attention today:
12:00 GMT. US: EIA short-term monthly energy market forecast