The European Union (EU) is gaining the trader’s attention with its strict stand versus the UK over Brexit ahead of the April 27 deal deadline.
Supporting the bloc is the headlines conveying the geopolitical risks in the South China Sea and willingness to welcome the US tourists during the summer holidays.
During earlier in Asia, the news came out which is suggesting Brussels push to Britain for an easy Brexit deal. As per the news, “Commission negotiators have told the UK that the EU will drop its demand for checks on food crossing into Northern Ireland if the government aligns itself with all EU plant, animal health, environment and food safety rules.”
BLoc is ready to welcome the US tourists, as per the New York Times (NYT). The news says, “American tourists who have been fully vaccinated against Covid-19 will be able to visit the European Union over the summer, the head of the bloc’s executive body said in an interview with The New York Times on Sunday, more than a year after shutting down nonessential travel from most countries to limit the spread of the coronavirus.”
On the other hand, The dollar fell on Monday amid speculation that U.S. Federal Reserve Chairman Jerome Powell will avoid talks of tapering bond purchases at a policy meeting this week.
Powell is about to encounter questions over whether an improving labour market and rising coronavirus vaccinations warrant a withdrawal of monetary easing, but most analysts expect him to say such talk is premature, which would put downward pressure on Treasury yields and the dollar.
The Fed’s next meeting will end on Wednesday, and no major policy changes are expected, traders will keep close watch to Powell’s comments after the meeting.
Rising coronavirus vaccination rates and an improving economic outlook are reasons to be optimistic, but many traders and analysts say Powell is likely to maintain the same stance of keeping easy policy in place for an extended period.
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