On Friday, Biden took the lead in both Georgia and Pennsylvania, which points to his somewhat inevitable victory in the US presidential election. Nonetheless, the US currency tries to regain ground as Wall Street experiences a shallow correction.
During the entire week, the US dollar experienced severe losses against all the major currencies. The Norwegian krone led the pack with almost 4% gain followed by other risky currencies, such as the Australian dollar or the Swedish krona. The EUR/USD pair appreciated by 2% this week, confirming a level of 1.16, but once again the advance has lost momentum ahead of the 1.19 mark.
US jobs market still hot red
The US economy added over 600K payrolls in October, and more importantly, the unemployment rate dropped unexpectedly from 7.9 to 6,9%. The data show where the economy was headed before the outbreak of the second wave of COVID-19 rather than its prospects. The figures came in above expectations. Regardless, it was the smallest gain since the spring, and further weakening of recovery is to be expected. Currency markets show little interest, and this is something we must get accustomed to as historic releases will continue to have limited impact on the decisions made by central bankers globally, which are predominantly focused on the dynamics of the pandemic.