Currencies related to trading on Monday were supported by an increase in risk interest. There are some things that affect this movement like Joe Biden winning the presidential election in the United States. Based on the interim count, Biden gets more votes.
Then, there is also a corona vaccine factor named Pfizer. Their developers say that its experimental vaccine is more than 90% effective in preventing COVID-19. The good news is no serious safety issues were found in the volunteers who had tried it.
Scandinavian currencies and the Japanese yen are among the biggest movers in the global market. Meanwhile, the Chinese yuan overseas also reached its strongest level in 28-months. Of course, this is an effective achievement for some. The market optimism looks very great.
Major Currency Pullers and Market Participants
Biden's victory may improve the better international trade relations. Meanwhile, the prospect of a successful coronavirus vaccine is seen as a major puller. This is the best solution given the growing global infected cases. Even big countries are still experiencing it.
Simon Harvey, a European currency analyst, said that while the market was already trading with good optimism, Pfizer's findings, based on preliminary data from a major study, had increased risk appetite further. At the very least, it alleviates fears of a second wave.
These conditions favor the higher beta currencies such as the Norwegian and Swedish crowns. Then, the price of oil can also rise and "parse" the dollar/yen. The dollar is known to be stable against several currencies after earlier touching a 10-week low of 92.12.
Lastly, the Dollar was found to be up as much as 0.2% at 92.31. The Swedish crown also rose to a 28-month high of 8.5845 versus the US dollar. The currency also rose to a 22-month high of 10.20 against the euro. Some movements are still visible in the market and show the dynamic.
Multiple Currency Movement Data
The Australian dollars are known to be up as much as 2.4% at 76.85 against the Yen. This is the highest in seven weeks. This Japanese currency also slip for about 1.6% against the US dollar to 105. The offshore Chinese Yuan was nearby and reached a peak of 6.5501 against USD.
The yuan stood up as much as 0.3% at 6.5729. The Canadian and Australian dollars increased 0.8% versus the USD with the latter reaching its highest price in seven weeks. There are some reasons that cause this thing.
The elimination of global uncertainty, the shift to funding, and viral differences against the US all support a weaker dollar until the end of the year.This was conveyed by George Saravelos, Deutsche Bank's currency analyst in his interview lately.
Saravelos expects the major currencies to potentially fall another 3% to 5% by the end of the year with the euro/dollar convincingly breaking through 1.20 and USD/yen reaching 100. However, its sales were withheld due to viral concerns.
What's Holding the Dollar so Far?
One reason is that President Donald Trump doesn't seem to be giving up while fighting a legal battle to overturn the results of the presidential election so far. Then there's more gridlock in Washington where Republicans seem to have control of the Senate.
However, it probably won't be clear until the second-round election in Georgia in January. This means that expectations for a large U.S. fiscal stimulus package are declining. This situation sends bond yields in anticipation of quantitative easing from the Federal Reserve.
In addition, the German exports were higher than expected in September. It's been one of the positives. Then, foreign trade gave Europe's largest economy a boost going into the fourth quarter as it struggled not to fall into a double-dissolution contraction.
