US President Donald Tump, speaking to reporters, has said that he ''wants a bigger stimulus deal than Pelosi's plan''.
Prospects for U.S. fiscal stimulus before Election Day dimmed last week with House Speaker Nancy Pelosi demanding the White House revamp its latest offer and Senate Republican leader Mitch McConnell pushing a smaller-scale strategy that Pelosi quickly rejected.
US Treasury Secretary Steven Mnuchin told House Speaker Nancy Pelosi that President Donald Trump would "weigh in" with Senate Majority Leader Mitch McConnell if an agreement is reached on a new pandemic relief package.
House Republican leader Kevin McCarthy, however, said he does not expect an agreement to be reached ahead of the Nov. 3 election as long as Pelosi is involved.
McConnell’s proposal to vote next week on just one provision replenishing funds in the Paycheck Protection Program for small businesses appeared to stoke opposition even from President Donald Trump, who tweeted “Go big or go home!!”
Pelosi told House Democrats on a call Tuesday that McConnell’s proposal was a non-starter, according to participants. She warned that Democratic priorities would be cut in any deal based on such an agreement, they said. In the wake of Trump’s “go big” tweet, she told colleagues that the Democratic side has more leverage than ever, three participants said.
Due to the lack of traction in talks, equities were struggling to stay above water last week, with both the Dow and S&P 500 losing ground for three of the five business days.
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EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
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