LONDON, Jan 26 (Reuters) - The dollar held at a one-week high on Tuesday as doubts over the speed and size of U.S. stimulus discouraged risk-taking in currency markets, with the Chinese yuan the only notable exception. London trading had a cautious tone after a turbulent Asian session with currencies including the Australian dollar and the euro under selling pressure before this week’s Federal Reserve policy meeting.
“FX markets are generally risk-off today with the dollar higher, but the Chinese yuan is among the only currencies in emerging markets holding firm,” said Kenneth Broux, a strategist at Societe Generale in London.
NEW YORK/BENGALURU (Jan 26): US stocks rose in choppy trading on Tuesday, with the S&P 500 scaling a new peak, after a batch of upbeat earnings updates including Johnson & Johnson s strong profit forecast and 3M s quarterly profit beat.
J&J added 3%, and was the top gainer on the Dow, as the drugmaker also said it expected to report eagerly awaited Covid-19 vaccine data early next week.
3M Co climbed 3.1% as it benefited from lower costs and demand for disposable respirator masks, hand sanitizers and safety glasses, amid a surge in coronavirus infections. The earnings season has been very positive, said Albert Brenner, director of investment and economic research at People s United Advisors in West Hartford, Connecticut.
The US dollar steadied on Tuesday as rising coronavirus cases and doubts over the speed and size of US stimulus tempered traders' upbeat mood, while investors were also cautious ahead of the Federal Reserve's policy review later in the week.
Trump sets up Office of the Former President in Florida theusnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theusnews.com Daily Mail and Mail on Sunday newspapers.
Biden stimulus plan could boost US output by 5% over 3 years: IMF
Gita Gopinath said the proposed package could add as much as 1.25 per cent to US growth in 2021, when the IMF projects the US economy will expand by 5.1 per cent after a 3.4 per cent contraction in 2020
Reuters | January 27, 2021 | Updated 01:15 IST
Preliminary estimates show U.S. President Joe Biden s proposed $1.9 trillion economic stimulus package could boost U.S. economic output by 5% over the next three years, the chief economist of the International Monetary Fund said on Tuesday.
Gita Gopinath told a news conference the measures in the proposed package could add as much as 1.25% to U.S. growth in 2021, when the IMF projects the U.S. economy will expand by 5.1% after a 3.4% contraction in 2020.