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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.