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Market News U.S. dollar weakens, high-risk currencies run out, Biden wins high, market risk sentiment increases

U.S. dollar weakens, high-risk currencies run out, Biden wins high, market risk sentiment increases

The dollar fell from a one-month high, and commodity currencies rose. The dollar index fell 0.51% to 93.55.

LEO
2020-11-04
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EUR/USD jumped 0.55% to $1.1704; the USD/JPY fell 0.13% to 104.7 JPY; AUD/USD earlier reported at 0.7174 USD, the highest since October 14.


High-risk currencies performed outstandingly. The Australian dollar appreciated by 1.25% to 0.7141, which was not dragged down by the Bank of Australia's interest rate cut and the new round of monetary easing plans.

Investors expect Biden to win the general election and launch a large-scale economic stimulus plan, thus driving risk sentiment.


The market speculates that the election of Biden will depress the dollar because the former vice president is expected to invest heavily in stimulating the economy and adopt a more liberal attitude towards trade, thereby boosting other currencies, but the dollar will suffer as a result. If the Democratic Party controls the US Senate at the same time, it is expected that the government's fiscal expenditure may be higher.


As the election day approaches, the market is increasingly optimistic that the election will have a clear result. The U.S. dollar index rose last week because investors feared that there will be a large number of mailed votes and potential litigation this year, which will cause the election results to be released after several days or even weeks; many traders do not bet on which side will win the election, but Buy U.S. dollars to ensure that market volatility can profit when the election results are released.


Forex trends:
    The dollar index is 93.4186. -0.66%
    EUR/USD at 1.1719 USD. +0.68%
    GBP/USD at 1.3063 USD. +1.15%
    AUD/USD at 1 AUD to 0.7166 USD. +1.60%
    USD/CAD at 1.3145 CAD to 1 USD. -0.54%
    USD/JPY at 1 U.S. dollar to 104.51 JPY. -0.19%

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