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EUR/USD Rallies as Counting of Votes in US Election Continues

November 5, 2020 by

EUR/USD rose today for the third consecutive day. While the Federal Open Market Committee made a policy announcement, markets largely ignored it. Instead, their attention was focused on the results of the US presidential election. It looks like Democratic candidate Joe Biden is going to emerge as a victor, though incumbent US President Donald Trump is trying to challenge such a result as a fraud.

Initial jobless claims were at a seasonally adjusted level of 751k last week, down from the previous week’s revised level of 758k (751k before the revision). Analysts were expecting a bigger drop to 740k. (Event A on the chart.)

Nonfarm productivity climbed by 4.9% in Q3 2020, exceeding the average forecast of a 3.6% increase. The previous quarter’s increase was revised from 7.3% to 10.1%. (Event A on the chart.)

As was widely expected, FOMC kept the target range for its federal fund rate unchanged at 0%-0.25%. The statement mainly commented on the impact the COVID-19 pandemic has already had on the economy and how the virus may influence it in the future. (Event B on the chart.)

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