- US stocks rise after the open, further weakening the US dollar.
- The pound spreads daily gains to over 150 pips.
The GBP/USD it rose even higher after the open on Wall Street and rose to 1.3060, reaching the highest level in nearly a week. It remains near the ceiling of the range supported by a general decline in the US dollar as Americans vote for their next president.
The dollar remains under pressure before the result of the US presidential elections. There are hours until the first results arrive. Market participants appear optimistic that the results will not trigger a period of political uncertainty.
The US dollar is falling sharply across the board, even against the yen. The DXY fell below 93.50 and lost 0.75%. At the same time, the Dow Jones is up 2.30% and the Nasdaq is up 2.01%.
The pound is rising not only against the dollar but also against the euro, with EUR / GBP trading at monthly lows below 0.8980. The latest report on the European Central Bank mentioned that the Pandemic Emergency Purchase Program (PEPP) is likely to remain the main instrument of further stimulus in December. As for Brexit, negotiations continue with difficulties to agree on shared access to fishing waters, a level playing field and differences over state aid.
Volatility in the next few hours is likely to increase dominated by speculation about the outcome of the US elections. Market analysts will look not only for who wins the presidency, but also for the future composition of the House and Senate.
Credits: Forex Street
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