Coronavirus relief funds clawed back from Fed put out of Yellen’s reach

Treasury Secretary Steven Mnuchin testifies during a Senate Banking Committee hearing on Capitol Hill

Mnuchin to Put $455B of CARES Act Money Into Restricted Fund Ahead Of Transition

The British pound held firm near a 12-week high against the dollar and six-month high versus the euro, propped up by bets Britain and the European Union would clinch a Brexit trade deal.

The dollar index, pitting the USA dollar against a basket of six major currencies, was at 92.012 after falling 0.4 per cent on Tuesday. It is holding above a key technical support at around 92, which analysts say would lead to further declines if broken.

THE US dollar nursed losses on Wednesday, as progress in developing a Covid-19 vaccine and expectations for a fiscal boost from a new US government triggered a shift of funds from the greenback to riskier assets.

Futures on the Dow Jones were trading down 0.1% at 29,968 points, suggesting the index may open at, or close to, Tuesday's record high above 30,000. S&P 500 futures climbed 0.5% and Nasdaq 100 futures advanced 0.7%.

U.S. stock futures point to a modestly higher start to trade later, after the Dow Jones crossed 30,000 for the first time on Tuesday, lifted by optimism over a vaccine and Biden's picks for his administration. "Eventually, there will be a price to pay - but worry about that another day", Stephen Innes, chief market strategist at broker Axi, said.

Treasury Secretary Steven Mnuchin is putting $455B of unused CARES Act funding into an account that his presumed successor, former Fed Chair Janet Yellen, will need permission from Congress to use, Bloomberg reports, citing a Department spokesperson. U.S. West Texas Intermediate crude settled 4.3% higher at $44.91 per barrel, its highest level since March 6.

United States stocks rallied on Monday, buoyed by news of Astrazenacas vaccine results, which was the 3 consecutive Monday where the markets absorbed positive vaccine news.

While the U.S. PMI is usually not a big market mover, the reading made a sharp contrast with less inspiring figures from Europe published several hours earlier, helping the dollar to gain against the euro, traders said. Markets will be encouraged and incentivized to take more and more risk.

The dollar has come under pressure in recent months from expectations that USA interest rates will remain near historic lows for years to come, and as news of various COVID-19 vaccines helped boost investors' appetite for riskier currencies.

"Less political concern moving forward" has also reduced the need for safe havens, Meger added. However, bars and restaurants will remain closed over Christmas.

Key economic data slated for release today include US Initial Jobless Claims as of November 21, US Revised annualised rate of real GDP for the third quarter, US Durable Goods Order Monthly Rate for October, University of Michigan Consumer Sentiment Index in the US for November and US Weekly Crude Oil Inventories as of November 20.

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