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EURUSD1401EUR/USD is trading near crucial support at 1.2140, as the US dollar and Treasury yields are cheering reports that the US President-elect Joe Biden is considering a bigger-than-expected stimulus package. According to CNN, Biden is expected to unveil a Covid-19 relief package worth $2 trillion on Thursday. The stimulus price tag is bigger than the $750 billion fiscal stimulus plan projected by Goldman Sachs last week. Senator Chuck Schumer was reportedly pressing Biden for a spending package worth $1.3 trillion.

Fiscal and monetary stimulus typically weakens the home currency. The dollar, however, is drawing bids on prospects of a bigger spending package. That's because Treasury yields, which have had more say in determining exchange rates of late, are rising in response to the stimulus news. The 10-year yield has added four basis points to trade near 1.11%.