CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD, GBP/USD, and AUD/USD on the rise after Georgia runoff

The dollar has come under pressure after the Democrats look to have taken the Senate, with EUR/USD, GBP/USD, and AUD/USD all gaining ground.

EUR/USD sharply higher as risk-on sentiment hurts dollar

EUR/USD has been gaining ground this morning, with growing expectations of a Democrat victory in Georgia looking to pave the way for a fresh bout of stimulus once US President-elect Joe Biden takes office.

With the price having broken through the $1.2327 overnight peak, the intraday uptrend remains key here. With the pair starting to pull back, short-term weakness is seen as a buying opportunity. As such, long positions are favoured unless the price breaks below the $1.2275 swing low.

GBP/USD likely to gain ground from here

GBP/USD has also been on the rise, with the recent recovery phase gradually taking shape after the lockdown-fueled weakness on Monday.

Nevertheless, with the pair on the rise, it looks likely we will see further gains take hold unless we break from this current trend of higher lows. As such, a bullish view is in play unless price falls back below the $1.3592 support level.

AUD/USD likely to benefit from Democrat sweep

AUD/USD has been on the rise in anticipation of a full Democrat sweep in congress, with Biden’s plan to enact a huge green infrastructure program likely to bolster commodity prices.

With the dollar also coming under pressure, we are looking at a potential long-term uptrend for AUD/USD. Looking at the pair from a short-term perspective, the creation of higher lows will remain key to staying long for this pair. As such, a bullish outlook holds unless price falls back below the $0.7733 low.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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