US Dollar at Two-Week Low Vs Pound and Euro as Biden Victory Fuels Risk Rally

Pound (GBP) Slips amid ‘Significant Differences’ Between UK and EU

The Pound (GBP) found itself on the defensive on Friday, undermined by renewed fears that little progress was being made towards a UK-EU post Brexit trade deal.

These concerns were seemingly confirmed over the weekend as Boris Johnson revealed that ‘significant differences remain’ in talks, following a phone call with EU Commission President Ursula von der Leyen on Saturday.

Top of the agenda for GBP investors this week will be the UK’s latest GDP estimate. Will a dramatic rebound in growth in the third quarter be enough to boost the Pound?


Euro (EUR) Buoyed by German Industrial Data

The Euro (EUR) trended higher at the end of last week’s session, benefiting from both weakness in the US Dollar (USD) as well as the publication of Germany’s latest industrial production figures.

Whilst September’s release came in below expectations, a revision to August’s figures was welcomed by EUR investors as it means that factory production has now expanded for five consecutive months.

Looking ahead, the focus for EUR investors at the start of this week’s session will be on the latest ZEW surveys, with a sharp deterioration in economic sentiment as a result of new lockdown measures likely to dent the Euro.


US Dollar (USD) Rebounds from Lows on Strong Payroll Figures

The US Dollar (USD) spent the first half of Friday on the defensive as investors continued to limit their positions in the safe-haven currency amidst signs that Biden would be declared as the next US president.

However, the ‘Greenback’ was able to claw back some of these losses later in the session as the latest US payroll figures reported that domestic unemployment plummeted from 7.9% to 6.9% in October.

Turning to this week’s session, with the election seemingly behind us, will a renewed focus on the coronavirus pandemic and its impact on the global economy see the US Dollar benefit from fresh safe-haven flows?


Canadian Dollar (CAD) Muted as Canadian Jobs Report Disappoints

The Canadian Dollar (CAD) was subdued at the end of last week’s session, with the ‘Loonie’ struggling to find support as domestic unemployment fell less than expected in October and oil prices slumped.


Australian Dollar (AUD) Rallies in Upbeat Trade                              

The Australian Dollar (AUD) struck higher at the start of this week, rallying through the Asian trading session as Biden’s victory in the US presidential election bolstered risk appetite on hopes for a major stimulus package.


New Zealand Dollar (NZD) Buoyed by Risk-On Trade

The New Zealand Dollar (NZD) also struck higher in overnight trade, fuelled by improved market risk appetite as well as New Zealand’s success in tackling the coronavirus.

Matthew Andrews

Contact Matthew Andrews