The US government has finally approved the long-disputed bill on government spending, extending the funding levels of programs in the United States. The agreement stated that $ 21 billion will be allocated to the so-called "Commodity Credit Corporation program", which, with its help, will provide effective assistance to farmers in order to help stabilize their income. In addition, the bill includes an additional $ 8 billion fund to food programs, under which families with children that are studying will be provided allowances to buy food. The bill will be in effect until December 11 this year.
Meanwhile, US President Donald Trump made another speech against China, accusing the country of its accountability to the spread of the coronavirus pandemic. According to Trump, China should be held responsible for the actions that it took, especially with regards to untimely measures to protect other countries from a pandemic. Chinese leader Xi Jinping, in his defense, noted that now is the time for everyone to unite and focus their efforts, not on criticism.
In this regard, latest reports from the United States highlight the improving condition of the US economy, thus, Fed chairman Jerome Powell and Treasury Secretary Steven Mnuchin gave propitious statements in their speeches yesterday.
According to Powell, the US Fed is doing very well amid the coronavirus pandemic, ergo, a sharp rebound from the bottom, as well as good statistics, can be observed in the country. And since these are entirely due to the bank's fiscal policy, it is likely that there will be another program in the coming months, which would support unprecedented economic growth in the rest of the year.
Treasury Secretary Steven Mnuchin concurred with these statements, claiming that the joint actions of the Treasury Department and the Federal Reserve have helped mitigate the consequences of the coronavirus pandemic and recession. The only thing that the department can do now is to give state and city governments more flexibility in terms of spending funds allocated to support the population.
In terms of statistics, the most noticeable report was the data for home sales in the US secondary market, which, according to the report of the US National Association of Realtors, jumped by 2.4% in August, amounting to 6 million. Such data fully coincided with the forecasts of economists.
With regards to the EUR / USD pair, a breakout from the level of 1.1735 will create a number of problems for the euro bulls, as apparently, demand for the currency will remain low, especially if today's data on the euro area's PMI come out weaker than the forecasts. In addition, a successful breakout from the support level of 1.1650 will strengthen the bearish mood in the currency pair, which will open the easy way for traders to decline the quotes up to lows 1.1590 and 1.1540.
The bullish move will resume only if the bulls manage to return the quotes to a price level of 1.1820, as well as renew the high, which is 1.1910.