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Markets More Bullish after Trump Administration Gives Green Light to Presidential Transition

Published: 24 Nov at 5 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,

Pound Sterling (GBP)

The Pound was initially resilient today, as hopes for a UK-EU Brexit deal to be reached soon persist. However, market relief over US politics ultimately left the Pound sliding against currencies that benefit from US Dollar weakness.

Sterling’s movement remains focused on Brexit developments and Britain’s coronavirus situation. Unless there are surprises in these issues, the Pound could remain relatively resilient instead for the time being.

Euro (EUR)

Today’s German growth and confidence stats beat forecasts. This, as well as weakness in the Euro’s rival the US Dollar, boosted demand for the Euro slightly today. GBP/EUR slipped back from its best levels as a result.

No notable Eurozone data is due tomorrow. The Euro will instead be influenced by movement in rival currencies, such as the US Dollar.

US Dollar (USD)

Market risk-sentiment kept the US Dollar under pressure today. News that the Trump administration would work with the incoming Biden administration on a smooth Presidential transition softened US political uncertainties, so the safe haven US Dollar was less appealing.

Tomorrow will be a big day for US data and news. US growth, goods and PCE inflation data will all be published. The Federal Reserve’s latest meeting minutes data will also be published. If these impress investors the US Dollar may be more resilient.

Australian Dollar (AUD)

Markets were more willing to take risks today, in reaction to the latest US political developments. The Australian Dollar regained ground against the Pound as a result. Australia’s economic outlook is strong which is also supporting AUD.

Australian construction data is due tomorrow. However, shifts in market risk-sentiment and upcoming Fed meeting minutes are more likely to influence AUD movement.

New Zealand Dollar (NZD)

The New Zealand Dollar remains one of the most appealing major currencies on markets. New Zealand’s optimistic economic outlook, combined with higher market risk-sentiment, is helping the ‘Kiwi’ to advance against other majors like the Pound.

Amid a lack of notable New Zealand data on the way, the New Zealand Dollar is likely to remain appealing. It could slide if market risk-sentiment worsens however.

Canadian Dollar (CAD)

The Canadian Dollar remained strong today, pushing GBP/CAD back to around the week’s opening levels. Prices of oil hit their best levels in March due to coronavirus vaccine hopes, which is boosting the oil-correlated CAD.

Developments in market trade sentiment and oil prices will continue to influence the Canadian Dollar’s movement tomorrow, amid a lack of notably Canadian data due for publication.
As of Tuesday, 24th November 2020, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1231, GBP USD exchange rate was 1.3363, GBP AUD exchange rate was 1.8139, GBP NZD exchange rate was 1.9148, and GBP CAD exchange rate was 1.7366.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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