The USD is still at its low level for two months. It started the sales session on Monday or yesterday. The optimism due to the implementation of COVID-19 vaccination and the process of the US stimulus package is arousing interest in the risk package.

For your information, Joe Biden as the initiator has a plan to give a stimulus. The amount is $1.9 trillion. Vice versa, the interest to US dollar function as a safe haven asset is decline. Based on the data, the value of that main currency is changing.

In the Monday night sales session, the index of Dollar (DXY) was sold at 90.32. It declines by 0.11 percent than the initial price. That level was still around the low area which was created on 10 of February 2021. 

The Pound Sterling Has the Best Position

The surprising thing is that the Pound sterling becomes the currency with the best performance. It is especially to the American dollar bearish yesterday night. Meanwhile, the GBP / USD touch the level of $1.39 for the first time in the last three years.

The commodity currencies are having the same trend. It is included the AUD / USD which becomes stronger to the highest level in three weeks. The position is around 0.7783. The increase of risk interest was reflected in the equity.

That happened with the increasing Europe index. Before, the Japanese stocks were also jumping to their high level in 30 years. It is although most of the Asian market is still in a holiday moment this week due to the Chinese New Year.

On the other side, the Democrat party is still processing the fund proposal related to the coronavirus. That proposal covers several aspects. One of them is the direct cash assistance payments with a value of $1.400. That’s quite great for sure.

The Points Covered by Stimulus

Besides the direct cash, the stimulus also covers some other points. Those are the extension of the extra benefits program for the unemployed, and assistance to families with children. This plan is not yet legalized so that the market participants must wait.

However, it seems that the market is quite sure that the stimulus will be legalized soon. Why? It is because that plan is supported by Janet Yellen as the US Treasury Secretary. The analysts in MUFG said that USD could be weakened more because of that optimism.

It is especially if the optimism still happens in a long-term session. There is an interesting fact happened lately. The yen becomes the only major currency that is in a weaker condition than the American Dollar yesterday night. How could it be?

The function of the Yen safe haven experienced the worse sell action than the USD. It is although the Japan GDP was reported higher than the expectation. The USD / JPY was up by about 0.42%. That erased the sharp decline of 1% last week. 

The Japan GDP Preliminary

Based on the data, the Japan GDP Preliminary for the fourth quarter in 2020 reached 3.0 percent. That was higher than the expectation of 2.4%. However, that situation was not directly able to make Yen is stronger because of the strong market risk-on interest. 

Based on the analysis from Kenny Fisher as the Marketpulse representation, the investors seem to choose the equity and US treasury more than the Japanese Yen. She said that is the most probable thing that will be happened in the market.

That is so interesting. She is pretty sure that the investors will still do that although Japan has a good positive economic growth lately. People thought that the outlook of the whole growth in that country is still not that bright, especially for the manufacturing sector.