New US President Elected, Has Started ‘Open Position’ Today?

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 The greenback dollar began trading this week with a modest decline after witnessing Joe Biden's victory as the 46th President of the United States.


Joe Biden is expected to continue to defend the consolidation in the stock market despite initial concerns that his victory will also mean a tax hike.


The Aussie dollar and the New Zealand dollar rose further as investors welcomed Biden's victory as president of the US by increasing purchases on risky currencies.


Hopes for a bigger stimulus are also rising after Biden is said to be setting up a special Covid-19 task force which will be announced today.


It should be noted, however, that Biden's victory does not mean that his path to change policy will be simplified, as they now hold 46 seats while Republicans remain with 48 seats. They need to get at least 51 seats to hold a majority in the Senate.



According to analysts, Democrats are expected to retain power in the House of Representatives while Republicans will continue in the Senate. This may mean that the tax hike proposed by Biden will not pass the Senate but there will still be additional fiscal stimulus and trade wars reduced.


The euro continued to strengthen its strengthening momentum following the downtrend recorded by the greenback dollar at the opening of the Asian session following gains in the stock market.


Meanwhile, the pound sterling also traded stronger. However, Brexit trade talks, which are still at a standstill with only a week to go before the UK and the European Union (EU) need to begin ratifying trade and security agreements, may limit the movement of the currency.

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