US Senate trudges toward passing $1 trillion infrastructure bill

Anil Panchal FXStreet

Early Monday morning in Asia, late Sunday in the US, Reuters came out with the updates from the US Senate where the policymakers jostle over President Joe Biden’s infrastructure spending plan during the weekend.

The latest news marks slow progress after the initial agreement to finalize the details. The news piece said, “The effort has been held up by opposition from Republican Senator Bill Hagerty, a freshman from Tennessee who objects to fast-tracking the legislation due in part to its effect on the federal budget deficit.”

Key quotes

The Senate convened at noon EDT (16:00 GMT) and was expected to hold two procedural votes on Sunday evening, unless Republicans and Democrats can reach an agreement on amendments to the package that was the result of months of bipartisan talks.

The legislation took an important step forward on Saturday, when 67 lawmakers including 18 Republicans voted to limit debate on the measure, comfortably surpassing a 60-vote threshold required for most legislation in the 100-seat Senate.

But unless all 100 senators consent to expedite the process, passage would have to wait until Monday or Tuesday under parliamentary rules that require legislation to move forward slowly and in stages.

After the Senate passes the bipartisan bill, it would go to the House of Representatives, which Democrats also control by a narrow margin.

FX implications

Given the cautious optimism over the passage of the much-awaited stimulus, global markets began the trading week in Asia mostly around Friday’s levels while waiting for more clues.

Read: AUD/USD remains pressured around 0.7350 amid broad USD strength, China CPI eyed

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD looks sidelined around 1.1850

EUR/USD remains on the back foot, extending its bearish tone and sliding towards the 1.1850 area to print fresh daily lows on Monday. The move lower comes as the US Dollar gathers modest traction, with thin liquidity and subdued volatility amplifying price swings amid the US market holiday.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.