Currency Market Analysis

Nov 13, 2020 | Currency Market Analysis

Global Themes

Greenback recovers as global rally loses steam

The US dollar was mostly stronger overnight as global markets also weakened.

Safe havens, like the Japanese yen and Swiss franc, also gained.

After a strong rally that was driven by President-Elect Joe Biden’s election win and good news on the development of a COVID-19 vaccine, markets have faltered as concerns over the US’s transition of power and global rise of coronavirus cases hit sentiment.

The US’s Dow Jones fell 1.1%.

Resistance hit

The euro saw small gained despite rising cases of COVID-19.

The British pound was weaker after economic growth numbers came in worse than expected.

The Australian dollar was lower in line with weaker risk appetite.

Policy worries

The overnight action was also driven by the European Central Bank’s major panel discussion that saw US Federal Reserve chairman Jerome Powell saying markets will face a tough northern hemisphere winter as COVID-19 cases rise.

Tonight, the focus turns to European growth numbers, with flash GDP due at 6.00pm.

US consumer confidence numbers are due at 11.00pm.

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