The euro today initially dipped against the dollar as Democrats took the lead in the Georgia Senate runoff elections, which could lead to a shift in US corporate laws. The EUR/USD currency pair later rallied as investor sentiment improved despite IHS Markit releasing several disappointing PMI prints from across the euro area.
The Japanese yen was the weakest major currency on the Forex market today as traders did not feel a need for safety, dumping the currency. Surprisingly, the Swiss franc avoided a similar fate despite also being considered a safe-haven currency.
The US dollar is struggling to find direction in overnight trading as the Georgia runoff elections go down to the wire. With control of the US Senate in the balance, financial markets have been paying close attention to the electoral outcome of the race that is critical for both parties. The result could have a considerable impact on fiscal policy moving forward.
The euro today fell against the dollar as eurozone countries initiated fresh lockdown measures to curb the rising coronavirus cases within their borders. The EUR/USD currency pair fell driven by safe-haven flows as investors bought the dollar to hedge against the risks posed by the coronavirus pandemic to the global economy.
The New Zealand dollar was mixed today, though it largely did not go far from the opening level against its major rivals. The notable exceptions were the Great Britain pound and the Australian dollar, with the former demonstrating a decent gain and the latter showing a decline versus the kiwi.
The US dollar performed very poorly last week despite the better-than-expected employment report. This week will have a couple important macroeconomic releases as well as a monetary policy meeting of the US central bank. Yet it is very likely that factors outside of the United States will have a bigger impact on the greenback.
The Sterling pound today fell against the US dollar as investors closed most of their profitable trades ahead of a crucial vote on the Brexit deal later today. The GBP/USD currency pair fell to its daily lows in the early American session before bouncing back as the vote drew closer.
The pound today crashed against the US dollar amid heightened Brexit uncertainty after the UK Parliament resumed its sessions following yesterday’s Supreme Court decision. The GBP/USD currency pair fell by over 130 pips as investors expressed their lack of confidence in the UK’s future by dumping the Sterling pound.
The Sterling pound today rallied against the US dollar amid hope that British leaders would pass legislation to prevent a no-deal Brexit. The GBP/USD currency pair’s rally was also boosted by other political developments like Jo Johnson‘s resignation, which lead to an early election.
The euro today rallied higher into the early European session despite rumours that the Italian government would call for an early election on October 23rd. The EUR/USD currency pair fell after the release of weak German trade balance data for June, which shrunk more than expected.
