- EUR/USD seesaws below 1.1900 after refreshing eight-week high.
- US dollar index (DXY) stays offered near the lowest since September 01.
- Biden’s victory propels S&P 500 Futures, Asia-Pacific stocks despite virus woes.
EUR/USD eases from the intraday high of 1.1895 to 1.1885 amid Monday’s Asian trading. Even so, the pair flashes 0.40% intraday gains after refreshing the highest since September 15 before a few minutes.
With the broad risk-on mood weighing on the US dollar’s safe-haven demand, the US dollar index (DXY) wavers around the 10-week low flashed on Friday. Also portraying the risk-on mood could be above 1.5% gains by the Asia-Pacific equity gauges as well as more than 1.0% rise of the S&P 500 Futures to the fresh high last seen on September 03.
Mainly propelling the risks are hopes of the coronavirus (COVID-19) stimulus from the US after Joe Biden’s victory in the presidential elections. The Democratic member has already claimed his rights on the White House but the Republican stand in the Senate, as well as Donald Trump’s lawsuits challenging the election results, offer intermediate jitters to the risks.
Also on the negative side is the recent hike in the COVID-19 cases from the US and Europe. While the global cases have already crossed 50 million, the latest tally Reuters suggest that total covid cases in America surpass 10 million.
Alternatively, European Union’s (EU) Brexit negotiator Michel Barnier’s optimism concerning the Brexit talks, as he arrives in London for the last push before next week’s key EU summit, offers positive support to the market optimism.
Looking forward German Trade Balance, expected €18.2 B versus €15.7 B prior, can provide intermediate trade direction but risk catalysts like US election updates, COVID-19 news and Brexit headlines will keep the driver’s seat.
Technical analysis
A clear break of the descending trend line from September 01, at 1.1835 now, keeps the EUR/USD bulls directed towards a two-month high of 1.2011.
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