November 9-13, 2020. Elections

2020-11-07

The US presidential election will continue to affect foreign exchange markets over the course of the coming week. Donald Trump is determined to challenge the election, leading to a re-recount in some states.

According to analysts, this is unlikely to change the balance that has developed in favor of the Democrat Joe Biden, whose house has already been taken under the protection of the US Secret Service. Nevertheless, the incumbent is ready to go to the Supreme Court in his dispute.

In any case, the intrigue of the elections for investors has already been played out in full, which will lead to a correction of the currency markets in favor of the dollar due to overbought major currencies. They rose on expectations of the adoption of a second package of measures by the renewed composition of the US Congress and a possible expansion of the QE program by the FRS in December.

A tangible blow to European currencies could disrupt the Brexit talks. A new deadline for the UK-EU transition trade deal is set for mid-November. Judging by the absence of meaningful comments on this topic all last week, the parties got down to real business and looking for compromises.

The Asian currency market in the coming week may show increased volatility, which should be taken into account by traders practicing the strategy of night trading. This may be due to the disappointing statistics from the PRC. Orientation to domestic consumption and stagnation in global demand can stop the growth of the Chinese economy.