SYDNEY (Reuters) – The dollar started the week in favor, as investors welcomed the election of Joe Biden as US president by buying trade-exposed currencies in hopes of a stable outlook for foreign policy, and as the US Monetary settings seem easy. Years.
Biden crossed the 270 electoral college votes needed for victory on Saturday at Pennsylvania’s Battleground.
Against a basket of currencies = USD, The dollar landed low on Monday and had a mustache above the ten-week trough.
The Australian, Kiwi, Euro and Pound increased slightly and were very ashamed of the multi-month peaks that formed on Friday when the market largely valued a Biden win. That the Chinese yuan is moving forward though CNH = D3 A fraction rose at the peak of 28 months.
Bank of Singapore FX analyst Moe Siong Sim said, “There has been mild politics in anticipation of a Biden presidency, increasing the Fed’s fears in comer politics.”
The yuan is particularly sensitive to the outcome, as traders said that Biden would be a less confrontational approach to relations with Beijing, or at least more predictive. Strong Chinese trade data was also published over the weekend.
The yuan rose nearly 0.1% in early Asia trade, while the Australian AUD = D3 And kiwi NZD = D3 The 0.3% rose and volatility gauge for each of the most prominent currencies. The Australian rose more than 3% and the yuan rose more than 1.5% last week. [AUD/][CNY/]
Some silence remains as Donald Trump, the first president to lose an electoral bid again in 28 years, has given no indication of winning the election as his campaign has stifled a legal battle against the results.
The Senate’s final makeup also depends on four unspecified races, including two in Georgia that won’t be resolved until the runoff vote in January.
Kim Mundy, currency analyst at the Commonwealth Bank of Australia, said in a note, “We would caution that the increased volatility is not behind us, even if the election outcome is all set.
Equity markets recorded their biggest weekly gains since April last week, while investors in the form of dollars bet that Biden would win and the Republicans would occupy the Senate.
Investors said this scenario would create a steady hand in the Oval Office and a divided Congress would investigate left-leaning impulses on taxes or regulations and possibly leave the US Federal Reserve to do a lot of work.
Matt Sherwood, head of investment strategy, said “Republican control of the Senate is likely to suppress President Trump’s economic populism and a fall in the US fiscal deficit, which is set to ease major fiscal pulls in 2021.” For ever in Sydney.
“This means that the 2021 increase will now depend on the US Fed,” he said, as well as a coronovirus vaccine, which would be negative for both US dollars.
On the horizon are Bank of England Governor Andrew Bailey and Chief Economist Andy Haldane at 1035 GMT and 1400 GMT, where negative rates are in focus. Dallas Fed President Robert Kaplan makes a speech at 2200 GMT.
On Wednesday, the Reserve Bank of New Zealand expects it to hold rates but will outline a downside next year.
In emerging markets, beaten-down Turkish lira TRYTOM = D3 There was a 2% increase in the wake of the removal of the central bank chief and the resignation of Turkey’s finance minister over the weekend.
The lira has slipped 30% to record levels this year among investors worried about forex reserves and double-digit inflation due to the coronavirus virus epidemic.
Currency bid prices in Sydney at 9:23 am (2223 GMT)
Details RIC Final US Closed Pct Change YTD Pct High Bid Low Bid
Euro Dollar Euro = EBS $ 1.1886 $ 1.1877 + 0.09% + 6.03% +1.1891 +1.1883
Dollar / Yen JPY = D3 0.0000 103.2800 + 0.00% -4.91% +0.0000 +0.0000
Euro / yen EURJPY = 122.76 122.69 + 0.06% + 0.66% +122.8700 +122.7400
Dollar / Swiss CHF = EBS 0.8980 0.9003 + 0.00% -6.96% +0.8981 +0.0000
Sterling / dollar Gbp = d3 1.3148 1.3150 + 0.04% -0.81% +1.3165 +1.3155
Dollar / Canada CAD = D3 1.3037 1.3064 -0.18% + 0.38% +1.3062 +1.3039
Australian dollar AUD = D3 0.7272 0.7261 + 0.27% + 3.76% +0.7285 +0.7275
New zealand NZD = D3 0.6787 0.6773 + 0.19% + 0.85% +0.6793 +0.6785
Dollar / Dollar
All spots Fx =
Tokyo Spot AFX =
Spots of europe EFX =
Instability FXVOL =
Tokyo foreign exchange market information from BOJ TKYFX
Reporting by Tom Westbrook