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Dollar strengthens as US rolls out rescue plan

US President Joe Biden yesterday signed off on a $1.9 trln Covid relief bill aimed at supporting the American economy. This strategy has already been dubbed the "American Rescue Plan", and for a good reason.

The bill was previously passed quite confidently by the US House of Representatives in a 220-211 vote.

The bulk of funds in the stimulus package will be allocated to tackle challenges related to the recovery of the country's economy in the wake of the coronavirus crisis. The social sector will receive tremendous support as the funds will expand the vaccination program, support small businesses, unemployment benefits could be indexed at $300 per week, as well as childcare benefits. This is not money "down the drain”, but rather a highly specific program that is capable of jump-starting the American economy from within.

The launch of the program was widely anticipated, so indices and assets showed virtually no reaction. However, this morning the EURUSD pair is declining in line with a correction after yesterday's rally, trading at 1.1960 and it could retreat to th


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