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The US Dollar Is About To Close Its Weakest Level In Two And a Half Years

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  • Improved wining margins of Joe Biden’s candidacy prompted global equities to rally.
  • Biden’s win send Chinese yuan to two years high against dollar mark.

The US dollar is closing in on its weakest level in two-and-a-half years, after a dash for riskier assets following Tuesday’s presidential election triggered a move that has left some traders scratching their heads.

The buck fell as much as 1 per cent against a basket of other major currencies on Thursday, putting it within touching distance of its August low. The move comes amid a shake-up in financial markets following the vote, which undermined expectations of a comprehensive victory for the Democrats.

Its likely that in short-term the US dollar trades lower on the easing of geopolitical uncertainty as expectations that a Biden presidency would back away from Donald Trump’s confrontational trade policy were also giving currencies such as the Chinese renminbi a boost as mentioned in FT.

Hong Kong Stocks surge as Biden’s White House chances raise trade truce hopes

The Hong Kong stock market finished session higher on Thursday, 5 November 2020, as growing prospects of a Joe Biden presidency in the United States raised investor expectations of a less problematic trade relationship between the world’s two largest economies.

TREND : WEAK BULLISH

Time                                      :           06/11/2020

Pivot                                     :         1.1802

Technical View                     :          LONG ABOVE 1.1822

Target                                   :         1.1842, 1.1892, 1.1941, 1.2015

Technical View                      :           SHORT BELOW 1.1782

Target                                   :         1.1762, 1.1729, 1.1664, 1.1606

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