- Euro Continues to Strengthen on ECB Comments
- Positive Chinese Data Pressures Dollar
- Trump Vows to Accept Electoral College Decision
A short trading week for the US has seen continued Dollar weakness in the forex market. This is little changed today but indicates an increasing appetite for risk from traders as the economy continues to rebound. This bounce back to action has also been felt in Asia with both Japan and China booming back to life recently. Back in the US more clarity than ever has been offered by President Trump that he is willing to vacate the office peacefully when the time comes.
Euro Strong on Commitment Comments
Though it has been quiet for Dollar forex trading over the Thanksgiving holiday and what will be a half day today, other major currency pairs around the world have been trading as usual. The Euro continued its strong march both on the back of Dollar weakness, but also thanks to the reaffirmed support of the ECB.
Comments from ECB Board Member Fabio Panetta in an interview today detail a look into the possible insight of the Central Bank. She expressed an opinion that the ECB will remain fully committed to their inflation targets in the bloc and that they have a number of tools at their disposal that are available to use in helping the economy reach these targets. Reaction from the Euro as comments filtered out was positive. The EUR/USD was hitting daily highs above $1.19 at the time of writing.
Chinese Economy Recovering Well
Data from analysts across the industry indicates that the Chinese economy continues to return to strength. Forex brokers have noted this as another pressure on the value of the USD as they push to get back on terms but are still faced with a mounting number of COVID-19 cases.
Manufacturing PMIs are expected to show more positive results for November to continue a running monthly trend of improving numbers with industrial profits also growing at the fastest rate in several years. Overall, the Chinese economy is expected to expand by around 2% on the year. While this would represent a lower than usual number it is still greater than almost all other global economic powers.
Peaceful Presidential Transition Gathers Certainty
President Donald Trump gave the clearest indication yet that he is ready to pave the way for a successful handover of power to Joe Biden when the time comes. Trump commented that he will “certainly” leave the White House if the Electoral College votes for Biden even though he later continued to repeat baseless claims of voter fraud.
The latest news confirms what most onlookers and traders feel, that Trump will give up the office on January 20th albeit begrudgingly. These latest comments though may help to provide further surety to markets that the changeover will be without unexpected obstruction. Many will be gauging the market reaction to these latest statements later today as markets open for a half day.