| Currency pairs | Exchange Rate as of 4 February 2021 | The event | Post Event-Exchange Rate as of 5 February 2021 | |
| AUD/USD | 0.7616 | US adds 49,000 jobs. Biden believes years before US sees full employment | 0.7616 | |
| USD/CAD | 1.2782 | US adds 49,000 jobs. Biden believes years before US sees full employment | 1.2809 | |
| USD/CNY | 6.4585 | US adds 49,000 jobs. Biden believes years before US sees full employment | 6.4639 | |
| EUR/USD | 1.2030 | US adds 49,000 jobs. Biden believes years before US sees full employment | 1.9920 | |
| USD/INR | 72.8942 | US adds 49,000 jobs. Biden believes years before US sees full employment | 72.8955 | |
| GBP/USD | 1.3651 | US adds 49,000 jobs. Biden believes years before US sees full employment | 1.3637 | |
| USD/JPY | 105.0200 | US adds 49,000 jobs. Biden believes years before US sees full employment | 105.3000 | |
| USD/MXN | 20.1501 | US adds 49,000 jobs. Biden believes years before US sees full employment | 20.3041 | |
| USD/DKK | 6.1815 | US adds 49,000 jobs. Biden believes years before US sees full employment | 6.2005 | |
| USD/NOK | 8.5960 | US adds 49,000 jobs. Biden believes years before US sees full employment | 8.6190 |
In the news …
From the White House’s Council of Economic Advisors. This morning’s jobs report reveals that the pace of job gains has slowed sharply in recent months as the pandemic continues to weigh on job creation, especially in face-to-face services. Strong relief is urgently and quickly needed to control the virus, get vaccine shots in arms, and finally launch a robust, equitable and racially inclusive recovery. The Employment Situation in January | The White House
House Democrats on Friday voted to adopt a final budget measure, setting off an approximately two-week sprint to draft a coronavirus relief bill that would mark President Joe Biden’s first legislative win. House clears way for massive coronavirus stimulus plan (msn.com)
The Commerce Department’s National Telecommunications and Information Administration (NTIA) is committed to increasing broadband Internet access across America, particularly in unserved and underserved communities. The recently enacted Consolidated Appropriations Act of 2021 provides new sources of tribal broadband funding to assist in mitigating the effects of the COVID-19 pandemic which is exacerbating the digital divide across Indian Country. NTIA Announces Tribal Consultations on New Program to Increase Broadband Access Across Indian Country | U.S. Department of Commerce
The Takeaway
The White House will not be placing emphasis on infrastructure deployment via its “American Rescue Plan.” The White House appears focused on short term aid to households via an additional $1400 in aid payments and on the gender issue, particularly the reported disproportionate impact pandemic-induced unemployment has had on women in the workforce. Not to say that infrastructure is off the agenda. Mr Biden through the U.S. Department of Commerce, has announced the administration’s intent to incentivize the deployment of broadband infrastructure on Native American lands via grants from the U.S. Department of Commerce.
Mr Biden’s approach to infrastructure, at this juncture, seems more like patchwork versus coordinated, targeted, and streamlined. Covid relief itself, through the American Rescue Plan, looks like it will be delayed with final work on legislation not expected until March 14th.
Currency markets should not view the funding as a currency mover especially with no definitive information on the impact the funding will have on interest rates or yields, factors that make the US more attractive for investment thus greater demand for US currency.
Alton Drew 