The USD is interesting once again. Overview for 22.12.2020

EURUSD has reversed after the world faced a new coronavirus strain. 

The major currency pair is barely moving to the downside on Tuesday morning. The current quote for the instrument is 1.2220.

Last weekend, the US Congress finally approved an additional stimulus package in the amount of $900 billion to support the country’s economy. The package is targeted, so one can be sure that the money will be spent as intended. 

It’s the second-biggest package ever approved for the American economy. The first one of $2.3 trillion was in March 2020. This time, it was supposed to be $1.2-1.5 trillion but the final approved sum is also very good. 

In this case, direct payments to individuals imply a $600 and $300 increase in unemployment benefits. In addition to that, billions will be spent to support small businesses, provide food assistance, distribute the COVID-19 vaccine, and improve the country’s health care system. 

$25 billion within the package are intended to extend the suspension of foreclosure of the right of redemption and leasehold. 

However, Democrats are standing their ground and believe that the country’s economy will need more stimulus packages before the coronavirus pandemic and its consequences are over. 

In this light, the USD is acting like a “safe haven” asset.