EURUSD is on track for a huge weekly gain before US elections results

Mohammed Abdelkhalik
November 6, 2020

Ad Disclosure

EURUSD Weekly Outlook: 5th November 2020

EURUSD rose on the European market on Friday to continue its gains for the fourth consecutive day, approaching a touch of a two-week high recorded earlier in yesterday’s trading, in the process of achieving a huge weekly gain, thanks to the preliminary results of the presidential elections in The United States, which boosted the risk appetite in global currency markets, with Democratic candidate “Joe Biden” leading the tense and burning election race so far.

EUR to USD rose nearly 0.3% to $1.1846, and the opening price of the day was at $1.1814, and the lowest level was at $1.1795.

Yesterday, EURUSD achieved a rise of more than 0.9%, in the third consecutive daily gain, with the largest daily gain since March 26, registering its highest level in two weeks at $1.1859, with Biden’s victory very close to the US presidential election.

In terms of trading this week, the single European currency is so far higher by more than 1.7% against the US currency, in the process of achieving its second weekly gain within the last three weeks, and the largest weekly gain since last July.

This biggest weekly gain in about four months is attributed to the positive sentiment that dominates the investors in CFDs, the widespread demand for buying high-risk currencies, and a significant decline in the purchases of the US currency as the best alternative investment.

Daily Chart of EURUSD - 6th November 2020

EURUSD rose after the expectation of Joe Biden wining

The global financial markets were pricing in greater chances of Joe Biden winning the US presidential elections, which is becoming a fait accompli with the near announcement of the results after the end of the counting process in several swing states.

Biden’s victory is expected to help a lot in approving a huge fiscal stimulus in the United States to support the world’s largest economy in combating the damage caused by the Coronavirus pandemic, and Biden is also expected to take a freer approach to global trade.

Democratic candidate Joe Biden is 6 votes away from the electoral college to announce his official victory in the tense presidential elections in the United States, with the blazing race leading by 264 votes against the 214 votes won by the current Republican President Donald Trump, and for Biden to become the new President of the United States, he must, He gets at least 270 electoral votes.

With the still counting in some swing states so far, Joe Biden is the leader in the results in the state of “Nevada” after counting more than 84% of the ballot papers, and Nevada has 6 votes from the electoral college, which the Democratic candidate desperately needs.

On the other hand, Federal Reserve Chairman, Jerome Powell, after the end of the US monetary policy meeting on Thursday, stressed the US economy’s need for more financial support by Congress to confront the crisis caused by the Coronavirus pandemic.

Author Mohammed Abdelkhalik

Professional Trader and Analyst, economist in Financial and Forex market since 2004.holds an MBA from the American University in Egypt. Mohammed works as an economic writer and technical & fundamental analyst for many international Forex and financial trading companies in both English and Arabic on a daily basis.