24 Nov

Trump Agrees To Biden Transition

November 24, 2020

By Orbex

Dollar Finds Support

The US index ended Monday’s session higher by 0.26% after touching the 92 handle.

A shift in risk appetite led investors to initially move away from the greenback. However, strong flash manufacturing and PMI numbers helped revive the dollar from monthly lows.

Whilst the recent developments on vaccines has been a good thing, Covid-19 statistics from the US have not been pleasing. Yesterday, health officials confirmed more than 141k new cases, bringing the total number to over 12.4 million.

In addition, Donald Trump seemed out of options after the President said the federal agency overseeing the handover must do what needs to be done.

He vowed to keep contesting his election defeat, even though the state of Michigan was officially certified in Biden’s favor.

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Eurozone in Line with Deep Contraction

The euro fell by 0.12% yesterday as worries continued over Europe’s recovery from the pandemic.

The IHS Markit report confirmed that business activity fell sharply in November as countries introduced more aggressive measures to combat the spread of infections.

The data added to the likelihood that the euro area will see a contraction in GDP again in the fourth quarter.

Sterling Cheerful, but Hurdles Remain

The pound ended Monday’s session 0.27% higher as it eyed the 1.34 level.

Vaccination headlines from the University of Oxford, as well as Brexit optimism, have led to the pound reacting positively.

As an EU/UK agreement edges closer, the main sticking points of fisheries, state aid, and governance remain.

Operation Warp Speed Kicks into Gear

US indices rose on Monday as the head of the White House’s Operation Warp Speed said coronavirus vaccinations will be available by mid-December.

The Dow, S&P, and the Nasdaq rose between 0.4% and 0.7% as positive pandemic and economic news hit the headlines.

We now wait to see if Steven Mnuchin’s request of $580 billion of unspent stimulus will be used to prop up small businesses and extend unemployment benefits further.

Gold Wallows in 4-Month Trough

Gold was nursing its wounds yesterday as it closed the session almost 2% lower.

Vaccine progression and strong US economic data saw risk appetite shift away from the yellow metal.

Attention now turns to a breakthrough of the $1800 handle.

WTI Settles Above $43

Oil was up for a fourth day in a row of finishing over 1% higher.

Optimism around the possibility of having a coronavirus vaccine available in December lifted the black gold to 3-month highs.

However, additional restrictions and lockdowns in several cities, as well as untamed infection rates globally, continue to raise demand concerns.

By Orbex


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