- Increase the anxiety in the markets before new updates of electoral data.
- US employment report shows significant drop in unemployment rate.
- EUR / USD marks highs in months but fails to exceed 1.1880.
EUR / USD hit a month and a half highs, rising to 1.1890 after the employment report and after it was learned that Joe Biden came to the fore in the vote count in Pennsylvania. After a few minutes there was a setback to 1.1856. It is trading at 1.1875, positive for the day.
In the event of winning the state of Pennsylvania, Biden would achieve enough electoral votes to win the presidency, regardless of what happens in the other states in dispute. This, along with speculation that Trump’s advisers would be asking the president to acknowledge defeat, fueled optimism in the markets.
One of the risks for the raises, both for the EUR / USD and for Wall Street, is that a “buy on the rumor, sell on the news” event occurs.
The EUR / USD is holding on to major weekly gains, greater than 200 pips. If finished at current levels, it would be the highest weekly close since August.
Credits: Forex Street