In the United States, the Democrat-dominated House of Representatives is preparing new legislation regarding China. The Democrats want to simultaneously improve the US’s relationship with China, while also boosting the competitiveness of American products globally.
The bills is also supposed to address other issues contested with China, such as the country’s treatment of its Muslim minority population and other human rights violations. The Democrats are hoping to offer an alternative to Donald Trump’s often aggressive tone when speaking of China and start a negotiating process that is not based on the fear of more tariffs but on mutual understanding.
In addition, investors were a little disappointed by this week’s Federal Reserve policy meeting. The central bank did not reveal any adjustments of its policy. Though it is clear that interest rates are not going to increase at least until 2023, the Fed did not say anything about its asset purchasing program.
The USD received a boost from this lack of news yesterday, but today it’s back on the downside. The stock indices, however, have definitely taken a turn for the worse because the lack of stimulus from the Federal Reserve is dimming the prospects of a fast economic recovery.
In other United States-related news, Congress is still struggling to agree to a new stimulus plan, almost two months since the previous stimulus package ran out. Donald Trump stepped in to encourage the Republican Party to agree to the Democrats’ demand for a higher package to provide a more well-rounded support for the economy.
Meanwhile, oil prices have stabilized above $40 due to an OPEC+ meeting to decide whether and how to increase the production of oil. The crude’s value dropped earlier this week because the coronavirus pandemic continues to pressure demand.
Lastly, today we expect a bunch of employment-related reports from the United States, including continuing and initial jobless claims.
