Stocks extended their weekly rally after weaker-than-forecast U.S. jobs data bolstered the case for President Joe Biden’s $1.9 trillion coronavirus relief package. The dollar fell.
Dollar Morphs Into Risk-On Currency Amid U.S. Growth Hopes
Bloomberg 2/5/2021 Masaki Kondo
(Bloomberg) Hopes for the U.S. economic recovery seem to be transforming the dollar from a haven asset to the risk-on currency of choice.
The currency has been rising in tandem with global equities after three weeks of divergence. Their inverse correlation weakened to minus 0.46 from a peak of minus 0.73 in July. The Bloomberg Dollar Spot Index showed its changing colors Friday by dropping 0.4%, the most in three weeks, after a report showed the U.S. added fewer jobs than expected in January.
The greenback’s turnaround is shaking up a consensus on Wall Street that a strengthening recovery would weigh on havens such as the dollar. The opposite appears to be happening, as the prospect of more-generous U.S. government spending from the Biden administration and rising Treasury yields have spurred the currency.
U.S. stocks climb on stimulus hope after weak jobs data
Rita Nazareth, Bloomberg News VIDEO SIGN OUT
Stocks extended their weekly rally after weaker-than-forecast U.S. jobs data bolstered the case for President Joe Bidenâs US$1.9 trillion coronavirus relief package. The dollar fell.
The House adopted the budget resolution that cleared the Senate early Friday, paving the way to pass a stimulus bill in coming weeks with only Democratic votes. The S&P 500 climbed to another record in its best week since November as all of its major groups but tech rose. The surge in GameStop Corp. after Robinhood Markets Inc. removed limits on buying the stock did little to repair the video-game retailerâs weekly plunge of about 80 per cent. Two-year Treasury note yields matched their record low amid a drop across shorter-dated rates.
U.S. stocks climb on stimulus hope after weak jobs data
Rita Nazareth, Bloomberg News VIDEO SIGN OUT
Stocks extended their weekly rally after weaker-than-forecast U.S. jobs data bolstered the case for President Joe Bidenâs US$1.9 trillion coronavirus relief package. The dollar fell.
The House adopted the budget resolution that cleared the Senate early Friday, paving the way to pass a stimulus bill in coming weeks with only Democratic votes. The S&P 500 climbed to another record in its best week since November as all of its major groups but tech rose. The surge in GameStop Corp. after Robinhood Markets Inc. removed limits on buying the stock did little to repair the video-game retailerâs weekly plunge of about 80 per cent. Two-year Treasury note yields matched their record low amid a drop across shorter-dated rates.