The Australian dollar strengthened to a two-and-a-half month high and the euro also strengthened on Tuesday as Donald Trump finally had to comply with Jeo Biden's victory in the election. Trump has officially allowed a transition for the Joe Biden administration to take over the White House.
According to the BBC, Trump says he has recommended the General Services Administration (GSA) to do what needs to be done despite promising to continue to oppose the election results. The GSA also acknowledged Biden as the winner. GSA administrator Emily Murphy said a US $ 6.3 million fund had been set up for the Biden administration.
Today's report has boosted market players' appetite for more risky assets. In addition, stock markets and oil prices also showed an increase due to the development of the Covid-19 vaccine which pushed the market to be more optimistic about the global economic recovery.
In addition, there is an expectation that the former Chairman of the Federal Reserve (Fed), Janet Yellen will be appointed Secretary of the Treasury. This will pave the way for government administration to drive recovery in the economy hit by the Covid-19 pandemic crisis. by increasing economic stimulus.
Commerzbank strategists are of the opinion that Yellen's appointment could lead to positive things because Yellen tends to adopt conventional conventions. Adding analysts, regarding fiscal packages, Yellen is often found to be willing to meet demand from the Fed.
The US dollar index, which measures the greenback against the major, recorded a decline of 0.10% to the 92.388 exchange rate.
Meanwhile, euro trading recorded a strengthening of 0.21% to the 1.186 exchange rate. The pound, on the other hand, began to record a slight decline as the market took a cautious stance due to developments in the Brexit trade negotiations and the quarantine policy implemented.
