The U.S. dollar traded lower on Tuesday. However, the major currencies suffered small losses due to uncertainty over the impeachment of the U.S. Senate in Georgia. These conditions triggered some support for safe-havens in today's global market. What's the data like?
The Dollar Index, which is tracking the greenback and six other currencies, fell as much as 0.1%. That currency is now at 89.733. The USD remained at its lowest level since last Monday. At that time, the Dollar was at 89.415 and occurred for the first time.
USD/JPY reportedly fell by 0.2% to 102.92. It came after earlier falling to 102.715 on Monday for the first time since March. EUR/USD is experiencing different things. The pair rose 0.2% to $1.2271, after reaching $1.2310 on Monday.
GBP/USD Also Made Improvements
GBP/USD rose 0.2% to 1.3602. Such positions recovered some of its declines after the announcement of a new national lockdown for the UK's new six weeks, meanwhile, the risk-sensitive AUD/USD pair also increased 0.8% at 0.7721.
The data means close to a 2-1 / 2 year high of 0.7743 recorded exactly on the last day in 2020. Right now, market participants are watching developments about the Senate impeachment in Georgia on Tuesday night. They observe in detail and also carefully.
That thing because U.S. government control is potentially up for grabs. This could affect the economic policies that will be introduced by President Joe Biden when it begins to legitimately lead later. These include aspects of future stimulus increases and infrastructure spending.
Both contests were rated very tightly by some and the outcome may not be immediately known. Many market participants think that the above moment is one of the important events in 2021. Therefore, they still have to be careful because the big risks can still be seen.
Republicans Rated Superior
Georgia Senate re-election is now very attention-grabbing for various parties in the global market. Meanwhile, most analysts estimate that Republicans are more likely to get those two available seats. This estimate is certainly based on a variety of considerations.
In the other side, investors may also want to see confirmed results before pushing the related trading and dollar weakness positions further. This was conveyed by an analyst at ING through a note. Right now, there's some data released by the Americans.
The U.S. economic data calendar on Tuesday consists of the December release of the ISM Manufacturing IMP. While there will be some officials from the Federal Reserve who are scheduled to give their opinions the day before the central bank issues its final minutes at the 2020 meeting.
GBP/USD Update After Lockdown Information
The lower movement was indicated by the pair and coincided with a broader recovery from lows. GBP suffered a sell-off on Monday in anticipation of a follow-up from British PM Boris Johnson who is reportedly set to announce a nationwide lockdown.
Even the lockdown is rumored to be more stringent to break the chain of spread of the virus. What's more, now a new variant is starting to occur in the country Almost 60 thousand new cases appear in the UK. The number of patients referred to the hospital is growing every day.
PM Johnson announced in a televised speech that the UK must take tougher measures to reduce transmission of the virus. Reportedly, the country will follow in Scotland's footsteps. School closures and a ban on outdoor team sports will be enforced soon.
Following confirmation of a third national lockout in the UK, the PM reportedly faces increasing calls for further support for business. One factor that raises concerns is the lack of vaccines. However, Boris guarantees everyone at risk will get an injection.
