FXstreet.com (Barcelona) - News about Obama's economic team working on a new Stimulus plan including tax-cuts by approximately $300 billion have fuelled stock markets to the first 2009 rally, while, on currencies, risk appetite seems to be back to boost the Dollar, which is gaining positions fast against most majors.
Barack Obama and congressional democrats are defining a plan to offer about $ 300 billion in tax cuts to businesses and individuals, in order to gain support fro Republican representatives, and to provide some relieve to companies which hopefully translates into job creation.
Stock indexes around the world have welcomed news from US posting considerable rises. Asian stocks have rallied, with the Japanese Nikkei Index up 2.1% driven by Banks and automakers. The MSCI Asia Pacific Index has risen 1.6%. In Europe, stock markets have all opened in positive with the German DAX 0.84% up and the Eurostoxx 50 up by 0,74.
The wave of optimism seems to have sunken the Euro and Yen while boosting the Dollar. The Euro Dollar is declining fast, dropping from 1.3928 to 1.3662. Next support levels are 1.3660, 1,3617 and 1,3506.