Traders Look for Post-Election Reset
- Euro and Aussie extend gains as currency trading gets underway
- Biden seen as a positive for trade, lifting risk appetite
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After a week in which markets barely had time to draw breath as Joe Biden inched toward victory in the U.S. presidential election, traders have begun to dive right back in with the euro and Australian dollar among currencies climbing versus the greenback.
The Democratic challenger’s win over President Donald Trump was declared by media networks on the weekend and the broad verdict is that a Biden administration will be a positive for riskier assets. This is in part because more predictable policies may help buoy global trade. And while the possibility of a divided Congress puts limits on the amount of economic stimulus that will be implemented, some form of package is also on investors’ radar.