- 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