EURUSD
The correction in US stock indices and concerns about a double-dip recession in Europe have not stopped buyers of the EURUSD pair. The forecast for the pair to rise to 1.2 in 2020 is now closer to reality than it was in early November. Regarding the corona vaccine, we should mention that the United States wants these vaccines to be available in less than three weeks. General vaccination can be key to victory over the coronavirus, global economic recovery, and the growth of the global risk index.
New quarantines imposed due to the prevalence of the second wave of the corona in Europe should have lowered the EURUSD pair index, but this did not happen. Bloomberg economists predict that for the first time since June, the buying index of European executives will fall below the important level of 50. If that happens, the pressure on the European Central Bank will increase and the central bank will expand its stimulus package at its December meeting. However, it should be noted that this factor has already affected the major currency pairs. Also, there has been some talk recently about the expansion of the US Federal Reserve's monetary policy.
Also, the news of the US Treasury Department's request to the Federal Reserve to repay $ 415 billion of unused budget provided by Congress to this bank seems purely political. Trump, who is set to leave the White House, wants to block the reforms of the next US president. He is trying to put Joe Biden in front of the Senate and House of Representatives after the change of Treasury Secretary and the return of the idea of supporting the economy by injecting liquidity and providing cheap credit. If the "blue wave" (the Democrats' victory in the presidential and parliamentary elections) had reduced the chances of passing a new stimulus package. In such circumstances, most of the responsibility fell on the central bank. In any case, the deteriorating US economy will cause the US Federal Reserve to pursue a monetary policy operation ‘operation twist’ as well as the expansion of a slight reduction policy.
The US Federal Reserve's expansionary monetary policy will be a downward factor for the dollar. Also, futures traders have recently reduced their dollar selling positions, and this could trigger a new wave of selling positions. Some sellers have retreated and will be replaced by new sellers, which is why the euro index will continue to move higher.
New quarantines imposed due to the prevalence of the second wave of the corona in Europe should have lowered the EURUSD pair index, but this did not happen. Bloomberg economists predict that for the first time since June, the buying index of European executives will fall below the important level of 50. If that happens, the pressure on the European Central Bank will increase and the central bank will expand its stimulus package at its December meeting. However, it should be noted that this factor has already affected the major currency pairs. Also, there has been some talk recently about the expansion of the US Federal Reserve's monetary policy.
Also, the news of the US Treasury Department's request to the Federal Reserve to repay $ 415 billion of unused budget provided by Congress to this bank seems purely political. Trump, who is set to leave the White House, wants to block the reforms of the next US president. He is trying to put Joe Biden in front of the Senate and House of Representatives after the change of Treasury Secretary and the return of the idea of supporting the economy by injecting liquidity and providing cheap credit. If the "blue wave" (the Democrats' victory in the presidential and parliamentary elections) had reduced the chances of passing a new stimulus package. In such circumstances, most of the responsibility fell on the central bank. In any case, the deteriorating US economy will cause the US Federal Reserve to pursue a monetary policy operation ‘operation twist’ as well as the expansion of a slight reduction policy.
The US Federal Reserve's expansionary monetary policy will be a downward factor for the dollar. Also, futures traders have recently reduced their dollar selling positions, and this could trigger a new wave of selling positions. Some sellers have retreated and will be replaced by new sellers, which is why the euro index will continue to move higher.
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