19.05.202108:59 Forex Analysis & Reviews: Euro and pound are in a lull. Meanwhile, the Biden administration set up a meeting to discuss revised proposal on US infrastructure.

Euro and pound were in a lull yesterday, showing no movement in either direction. Undoubtedly, this is caused by the lack of macro statistics, not to mention the strong buying pressure, which scared off new investors in the area of monthly highs. Apparently, in every slight decrease in euro or pound, bullish traders quickly pick up the market, returning it to valuable levels. Hence, both currencies remain bullish, and just need reasons to continue the upward trend.

In the US, local reports said the Biden administration scheduled a meeting at the Capitol to discuss the counterproposal Republicans have submitted. It will determine if there is potential for a bipartisan deal or not, especially since it will be attended by the US secretaries on transportation and commerce. And although there is very little information on the meeting, it will most probably continue the efforts President Joe Biden made last week, when he met with Republicans at the White House.

The package Republicans have proposed amounts to $ 568 billion, which is significantly cheaper than Biden's "American Jobs Plan", which is worth $ 2.25 trillion. But yesterday, Senate Republican Leader Mitch McConnell said he could agree to a sum of about $ 800 billion.

On a different note, it was reported that bona fide taxpayers in the US will finally receive their reimbursements on the taxes on unemployment benefits. But some citizens may see less refunds, or not receive it at all. It will depend on whether they have outstanding debts, such as federal and state taxes, alimony, or outstanding student loans.

In the new program lobbied by US President Joe Biden, the federal tax on unemployment benefits, which was collected in 2020, will be refunded to taxpayers. But many expect that the money will quickly return back to the economy in the form of consumer spending. However, this may not happen as according to the latest retail sales report, the surge that was expected did not occur. Instead, sales remained unchanged, even though there was a sharp inflow of money back in March.

Another news is the call of US Treasury Secretary Janet Yellen to the skeptical business community. She asked them to support the planned tax increase, as it will help pay for the administration's $ 2.25 trillion investment in national infrastructure. Yellen said the new directions that will be available after the implementation of the program will bring large profits to businesses.

The corporate income tax rate is planned to be increased from 21% to 28%.

With regards to the world's epidemiological situation, residents of two apartment buildings in western Germany were quarantined after one of them was diagnosed with the infectious Indian variant of Covid. Because of this, authorities across Europe are on high alert, especially since the number of confirmed cases of coronavirus in Germany has increased to 3,603,055.

As for the technical picture of EUR/USD, a lot will depend on 1.2195 because staying above it will maintain the opportunity of the euro to reach 1.2250 and 1.2300. If bearish traders manage to gain control of 1.2195, the euro will drop to 1.2140, and possibly collapse to the 21st figure.