- Summary:
- EURUSD pair was unchanged after Washington made a $2 trillion stimulus to individuals and companies. EUR/USD now eyes durable goods data from the US
The EURUSD pair was little changed after congressional Republicans and Democrats agreed to a bipartisan $2 trillion stimulus package. The deal was announced by Republican leader, Mitch McConnell and his Democratic counterpart, Chuck Schumer.
The deal, which is the biggest rescue package in history, will see adults making less than $75,000 per year get about $1,200. Children will receive $500. Additionally, the deal includes a record $367 billion loan program that will go to small and medium-sized businesses. The deal also includes $500 billion that will go to large businesses, industries, and cities.
The agreement, which will be voted later today, comes after Democrats blocked previous attempts by Mitch McConnel. While they agreed in principle on a need for a rescue, they wanted more laws to accompany the deal. For example, they wanted a cap on executive pay, a cap on dividends and share buybacks, and a limit on how these companies spend their money.
Part of the reason why the EURUSD pair failed to move was that the deal was expected. In the past few days, leaders of both parties have been optimistic about the progress.
US Durable Goods Orders Eyed
We will receive the durable goods orders from the US later today. These are important numbers, which show the amount of long-lasting goods ordered from manufacturers. Analysts expect the durable goods orders to have dropped by -0.8% in February after dropping by -0.2% in January. They expect the core durable goods orders to have declined by -0.4% after rising by 0.8% in January.
These orders will continue to drop as the shutdown continues. Most importantly, the problems being experienced by Boeing, the biggest US manufacturer, will weigh the orders down.
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EURUSD Technical Analysis
In the hourly chart below, we see that the EUR/USD pair is moving in an ascending channel that started after a double bottom that happened on March 20 and March 23. At the same time, we can see the pair find some resistance near the lower side of the channel. With the trend being bullish, I expect the pair to attempt to retest the important resistance level of 1.0900 if it moves from the current consolidation phase. On the flipside, the pair could move below the support and resume the overall bearish run.