02.04.202108:30 Forex Analysis & Reviews: US stock market closes week at new highs

S&P500

The US stock market is already closed because of long holidays. After the announcement of a new $2.2 trillion plan proposed by Joe Biden, the US stock market showed a significant rise. Oil prices advanced by 3% despite the fact that OPEC+ decided to increase oil production by 1 million barrels a day until July.

Yesterday, US stock indices showed a confident rise. The Dow Jones Industrial Average jumped by 0.5%, S&P500 added 1.2%, and NASDAQ increased by 1.76%.

The market reacted positively to Biden's new $2.2 trillion infrastructure plan for the next 8 years. However, the US Congress will hardly adopt it, as they do not support the idea of higher taxes, which is necessary to implement the ambitions plan of the US President. Joe Biden proposed increasing the income tax for corporations to 28% from 21%. What is more, the US citizens whose income exceeds $1 million a year will also have to pay higher taxes. Nevertheless, all these thorny issues will be discussed later. At the moment, almost everyone considers this plan really good.

Today, Asian markets also grew following their US colleagues. Thus, China's main stock index added 0.9% and Tokyo's Nikkei 225 index gained 1.4%. At the same time, oil prices jumped by 3%.

Today, market participants are waiting for the US employment data. According to the forecast, the US unemployment rate may drop to 6.0% from 6.2%. Yesterday, the report showed that long-lasting unemployment stopped at the level of 3.8 million people.

ISM Manufacturing PMI advanced to 64.7 points, significantly exceeding the forecast of a rise to 61.5 points. In the US, paces of economic recovery are faster than in Europe.

At the same time, in the US, the number of new virus cases is still above 70 thousand a day. (In Russia, the indicator is below 10 thousand a day). However, a rapid vaccination may change the situation for the better.

Yesterday, DJ33160 added 0.5%. Today, the market is closed because of the celebration of Good Friday.

Yesterday, WTI closed with a rise of 3.5%. Today, the market is closed.

USD/CAD

The US dollar dropped to 1.2530 against the Canadian dollar. Analysts suppose that it is just the correction and not the trend reversal. The price may reach such levels as 1.2450 – 1.2580.

USDX

Yesterday, the US dollar index slumped to 92.87 points after a long rise. It seems like a pause in the US dollar appreciation. The index is likely to hover between the levels of 92.50-93.10.