What you need to know on Friday, May 28:
Financial markets were in a better mood. US President Joe Bide is said to propose a $6 trillion budget, to invest in infrastructure, education, health care and more. Meanwhile, Senate Republicans unveiled a counteroffer of $928B infrastructure investment. Wall Street headed firmly up ahead of the opening, retreating afterwards but anyway ending the day in the green.
Government bond yields were also up, with that on the 10-year US Treasury note up to 1.62%, 7 points higher from weekly lows, to finally settle around 1.60%.
The greenback ended the day mixed against its major rivals. The EUR/USD pair hovers around 1.2200, unable to extend gains. On the other hand, GBP/USD rallied beyond 1.4200 after BOE’s policymaker Gertjan Vlieghe said that the central bank could raise interest in the first half of the next year if the job market bounces back faster than expected. However, worth noting that Vlieghe’s term as an external MPC member expires in August and cannot be renewed.
The AUD/USD pair held around 0.7740 as gold ended the day unchanged at around $ 1,888 a troy ounce. The Canadian dollar appreciated against the greenback as crude oil prices soared, with USD/CAD trading at around 1.2070 and WTI at $ 66.85 a barrel.
The USD/JPY pair woke up and approached 110.00 its highest in almost two months.