After a week in which the markets barely had time to breathe as Joe Biden won for the US presidential election, traders returned rights with the euro and Australian dollar climbing back to greenback vs. currencies Has started taking.
The Democratic Challenger’s victory over President Donald Trump was announced over the weekend by media networks and the broader ruling that a Biden administration would be a positive for risky assets. This is in part because more predictive policies can help global trade. And while a divided Congress likely places limits on the amount of economic stimulus that will be implemented, some form of the package is also on investors’ radar.
Nigel Green, a Zurich-based chief executive and founder of the financial-advisory firm Devière Group, said Biden may struggle to get $ 3 trillion by Democrats, but some packages are likely. He said, “This will lead to a bounce in the markets and investors will have to think about a macroeconomic recovery.” As the world’s largest economy, sustainable, long-term growth in the US will have a positive impact for the world economy. “
The euro and Australian dollar have gained over the past week, a greenback in the opening round of the Asia-Pacific trade, although the scale of moves was relatively muted as Biden reached the verge of victory before New York trading ended on Friday Were. The yen, often seen as a haven, was marginally weaker against the US currency in early trade.
Over the weekend, Biden called on Americans to separate their divisions. The victory speech that promised swift action against the coronovirus epidemic after the election and a gradual transfer of power. Nevertheless, the 46th President will not take office until 20 January and since then there is a possibility of dissolution. Trump has vowed to challenge the election result in several states, without any evidence alleging that the vote was a widespread fraud.
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“The dollar should remain structurally weak, and this means that the world’s currencies will still be strong in time,” said Jamil Ahmed, London’s director of investment strategy at the German fintech group NAGA before the opening of the market. However, the global stock “is unlikely to continue last week’s extraordinary boom as a result of contested elections.” This is an undisclosed threat and we all look forward to seeing it playing domestically in the US because the current administration does not look like they will accept the 2020 presidential race without a fight. “
While currency markets have started trading, US stock and treasury futures are not expected to start until around 6 a.m. New York time.
Last week was a new one for the markets. Stocks rose, the Treasury was whipped and the dollar slipped. Assets were affected not only by the results of the United States from November 3, but also by The latest policy decisions of the Federal Reserve and the monthly U.S. Jobs report, which was stronger than expected.
Markets stayed in the Middle East on Sunday, the first to trade after Biden’s win. Stocks in Dubai posted their biggest three-day rally since August. Saudi Arabia drew its longest streak since October. 13. The Kuwait gauge closed above its 50-day moving average, while Oman shares made back-to-back advances for the first time in a month. Israel’s main index reached a two-month high.
– with assistance by Michael G. Wilson
(Update open with money market)