Greenback Fragile on Election Predictions
The dollar index fell by 0.68% on Tuesday as the US went to the polls.
Traders are assessing the risks of yesterday’s vote as Joe Biden is favored to win the presidency, but they also understand that polls tend to be wrong.
Should the early predictions come into fruition, then policymakers are expected to agree on a new stimulus deal after the turbulent election period.
On the flip side, the US indices increased by over 1% as wall street remained positive over a Biden win. This would create an easier path to inject more stimulus into the economy.
The final results could be delayed for some time as postal counting became more apparent due to coronavirus concerns.
Euro Bounces Back
The euro shot past the 1.17 handle yesterday as it closed the session 0.66% up.
Sentiment surrounding the US dollar helped lift the gloom hanging over the euro.
The EURUSD pair was also buoyed over eurozone finance ministers remaining confident on the next seven-year EU budget worth €1.07 trillion
Sterling Encouraged Despite Lack of Brexit Breakthrough
The pound jumped over 1% on Tuesday as it clawed back to the 1.30 handle.
Michael Barnier is set to report that the progression of Brexit talks have decelerated on key issues, as a lot of work still needs to be done.
The House of Commons will vote today to confirm the lockdown measures that will come into force on Thursday.
Gold Reclaims $1900
Gold pushed over the psychological barrier yesterday as it closed 0.70% higher.
Risk appetite once again swung as traders shifted their attention to the yellow metal. Prices are expected to hover around this level as traders are set for a contested Presidential result.
Oil Soars on Crude Draw
WTI surged over 3% on Tuesday as API data revealed an 8-million-barrel decline from last week.
Oil managed to close the session over $38 as it now looks to reclaim yearly highs above $40.
Bearish factors this week include a ramp-up of oil production in Libya and additional lockdowns in Europe.