World News – UA – Dollar drops as investors bet on Biden win

0

The US Dollar fell on Tuesday as risk appetite increased on bets that Democrat Joe Biden will win the presidential Tuesday’s U and launch a big new stimulus package, and as the the greenback has faced resistance at the top of its recent range

Biden has been leading in national polls, but President Donald Trump is close enough in states oscillating enough to eventually muster the 270 state-by-state electoral college votes needed to retain the presidency, which he won in a surprise result in the 2016 elections

Analysts believe a Biden win would weaken the dollar as the former vice president would have to spend heavily on the stimulus and take a freer approach to trade, boosting other currencies at the expense of the dollar Tax expenditures would likely be even higher if Democrats also take control of the US Senate

« It looks like the markets are now pricing a strong Blue Wave odds, which implies a significant fiscal stimulus and debt issuance in 2021, » said Win Thin, global head of currency strategy at Brown Brothers Harriman, in a report

The euro jumped 061% to $ 1 1711, after hitting technical support at $ 1 1621 on Monday, which was a month’s low

The greenback was bolstered last week amid fears the election outcome might not be clear for days or even weeks due to a surge in postal ballots and possible legal challenges

Rather than betting squarely on a particular outcome, many traders have also flocked to dollar security in order to be well positioned to take advantage of the volatility when the results arrive.

« Those who have not yet covered themselves, but who would feel pain with strong movements, should cover themselves as soon as possible, as it becomes more and more expensive, » wrote to her clients Antje Praefcke, Commerzbank strategist Note

Overnight volatility gauges for major currency pairs hit highs several months ahead of election result

Euro / dollar implied volatility jumped to 19%, its highest level since the depths of market chaos in March, from less than 7% on Monday

Higher risk currencies, including the Australian dollar, outperformed with the aussie rising 123% to $ 0 7,140, ​​even after Australia’s central bank cut interest rates close to zero and stepped up its bond purchase plans

The Federal Reserve will conclude its two-day US meeting on Wednesday Employment data for October is also a focus on Friday

Data is a real-time snapshot * Data is delayed by at least 15 minutes Global business and financial news, stock quotes and market data and analysis

US Presidential Election, 2020, FX Market, Joe Biden, Donald Trump

Global News – AU – Dollar falls as investors bet on Biden’s victory



SOURCE: https://www.w24news.com/news/world-news-ua-dollar-drops-as-investors-bet-on-biden-win/?remotepost=515924

Donnez votre avis et abonnez-vous pour plus d’infos

Vidéo du jour: