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| EUR/USD four-hour chart, source:FXDD.com |
cf. [EUR] Short USD and Long EUR 2020 1013
cf. [EUR] Rebounding EUR 2020 1006
cf. [EUR] Coronavirus and Non-Farm Payrolls 2020 1002
cf. [EUR] Euro on the Corssroad 2020 0926
Gjallarhorn holds the Long position of euro in the futures market, CME. It still records the loss.
Gjallarhorn recognizes that the previous report has been incorrect. It has the long position of euro, and it gives the long bias about euro. If the strong greenback is recommended, it may get cognitive dissonance.
The currency pair EUR/USD plunged suddenly in the Tuesday afternoon(GMT). The US dollar was the lowest level in three weeks against the major currencies.
''Biden Trade'' which implies the bearish greenback, stepped back. The grim news of COVID-19 vaccine and the fail of fiscal stimulus before the Presidential Election on November 3 strengthened the greenback.
The House Speaker Nancy Pelosi rejected the proposal of the stimulus by President Donald Trump on Tuesday.
These news lowered equities' prices in the market as well as euro.
The offered stance in EUR/USD is also reinforced by disappointing results from the latest ZEW survey in Germany and the broader Eurozone. These results add to the idea that the recovery post-coronavirus crisis could be stalling or that optimism among market participants is debilitating.
The pair EUR/USD is 1.1744 as of 04:30(GMT) and fluctuates in Bollinger Band in the four-hour chart.
Though the drop of euro, the long bias to euro is still valid. Gjallarhorn still recommends to buy euro rather than to buy dollar.
Wall Street bet on Biden in the election in the next month. They expect the Democratic Party does more stimulus after winning the election.
Goldman Sachs predicts the weak greenback because the vaccine against COVID-19 will be made and the Democratic Party and Joe Biden beat the Republican Party and Donald Trump respectively on November 3.
The news agency, Bloomberg reported on Tuesday, Forex market bet Biden, too. It reported Chinese Yuan strengthens against greenback because of the forecast of Biden's victory and the recovery of Chinese economy.
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