Global markets saw many economic events that helped shape the global economy previously, as oil prices recorded their highest levels since January 2020 before the start of the COVID-19 pandemic at levels of $70 a barrel. The following are the major events that occurred on global markets this week.
Biden to sign $1.9 trillion stimulus bill.
After a long wait since Biden took the reins of power in the US and promised to implement the $1.9 trillion fiscal stimulus package since last January, the Senate agreed to approve last Saturday by ratifying the stimulus package by a vote of 50 to 49, with all members of the Democratic Party voting in Biden`s favor, while opposing All Republican members.
The measure targets $400 billion in direct payments of $1400 to most Americans, and $350 billion to help state governments and local administrations. It includes expanding the scope of a tax exemption associated with child custody and increasing the amount of funding which are allocated for the distribution of vaccines.
President Joe Biden signed the stimulus package to enter into force since last Thursday, the one-year anniversary of the start of the comprehensive lockdown in the United States to contain pandemic.
The US dollar is trying to regain its luster before the weekly close.
Following the approval of the US stimulus package, the US dollar was subjected to widespread selling, as the dollar index, which measures the currency's value against six major currencies, returned to levels of 91.30 before returning to rise again before the weekly close around 91.90 levels.
Commodities who benefited the most US dollar weakness, especially gold in which it rose to 1740 levels before encountering hefty resistance in that area, preventing it from making extra gains and then consolidation towards the levels of $ 1700 an ounce.
Will oil prices continue to rise?
Global oil prices began at the beginning of the week with strong gains, with WTI reaching levels of $68 a barrel in the wake of a missile attack on oil facilities in Saudi Arabia. However, prices failed to stabilize near these levels and returned towards $66.00 after Saudi confirmed that the attack on these facilities would not affect the oil production process in general.
Bank of Canada keeps interest rates unchanged.
The Bank of Canada kept interest rates unchanged during its meeting in March at 0.25% levels, and even emphasized that they would keep interest at those levels at least until 2023 in an effort to support economic growth, and maintain the current pace of the bond-buying program.
The Bank of Canada expects first-quarter 2021 GDP growth to be positive, rather than the contraction forecast in January.
ECB keeps its monetary policy unchanged
The European Central Bank decided to unchanged its monetary policy with no adjustments to the PEPP volume at least until 2022.
While Christine Lagarde confirmed at the press conference after the decision that economic weakness dominated the euro area in the first quarter of 2020, which caused the euro to decline against most major currencies.