The US greenback and the Japanese yen had been the strongest currencies on the Foreign exchange market through
The US greenback and the Japanese yen had been the strongest currencies on the Foreign exchange market throughout the final week of October, rallying on the again of threat aversion. The euro was among the many weakest.
The predominant theme at the finish of the month was the US presidential election at the begin of November. With no clear winner and with uncertainty about how the final result will change the US political panorama, traders had been nervous and most popular to persist with safer property. The second wave of the COVID-19 pandemic was one more reason to fear. And the proven fact that the US politicians didn’t agree on a coronavirus reduction package deal earlier than the election was not serving to both. With loads of causes to fear, it was not a shock that merchants most popular to purchase the buck and the yen. What was stunning was the proven fact that the Swiss franc, one other forex perceived to be secure, didn’t be a part of the rally.
In the meantime, the euro languished as the European Central Financial institution signaled that it’s planning to add to stimulus subsequent month. The rising variety of coronavirus circumstances and the return of lockdown measures throughout Europe was one more reason for the forex’s weak point. The lockdown threatens to derail the already fragile financial restoration.
EUR/USD tumbled from 1.1855 to 1.1646. GBP/USD dropped from 1.3053 to 1.2950. USD/JPY ended the week flat at 104.67.
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