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  • US stocks rally after the opening, weakening further the US Dollar.
  • Cable extends daily gains to more than 150 pips.

The GBP/USD rose further after the opening in Wall Street and climbed to 1.3060, reaching the highest level in almost week. It remains near the top supported by a broad-based decline of the US dollar as Americans vote for their next president.

The greenback remains under pressure ahead of the outcome of the US presidential elections. There are hours to go until the first results came in. Market participants apparently look optimist that the results won’t trigger a period of political uncertainty.

The US Dollar is falling sharply across the board, even against the yen. The DXY dropped below 93.50 and is falling by 0.75%. At the same time, the Dow Jones gains 2.30% and the Nasdaq rises by 2.01%.

The pound is rising not only versus the greenback but also against the euro with EUR/GBP trading at monthly lows under 0.8980. The latest report about the European Central Bank mentioned the Pandemic Emergency Purchase Programme (PEPP) is likely to remain the main instrument to more stimulus in December. Regarding Brexit, negotiations continue with difficulties on to agree on sharing access to fishing waters, level playing field and differences over state aid.

Volatility over the next hours will likely rise dominated by speculations about the outcome of the US elections. Market analysts will look not only for who wins the presidency but also the future composition of the House and the Senate.

Technical levels