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Foreign Exchange Market Update

Foreign Exchange Market Update

Please call the FX Department at 626-279-3235 for the most current rate.

November 24, 2020

Overnight changes in major currencies (9am PST)

 

United States (US): USD Falls On Biden Transition

USD lost ground, after the General Services Administration told US President-elect Joe Biden to begin the formal transition, recognizing him as winner of the election. The move eased political uncertainty and enable Biden's team to obtain funding, access to government data and other assistance. Biden is expected to pick former Federal Reserve Chair Janet Yellen as Treasury Secretary, a pivotal role in which she would help shape and direct his economic policies. Looking ahead, investors await US economic reports on home prices and consumer confidence due later in the day. 11/24/2020 - 04:23AM (RTTNews)

Australia & New Zealand: AUD, NZD Rally As Trump Accepts Biden's Transition Process 

Australian dollar traded at 0.7347 U.S. cents at 9:00 am PST. 

New Zealand dollar traded at 0.6970 U.S. cents at 9:00 am PST.

AUD and NZD climbed against their major opponents on Tuesday, as the Trump administration has given approval to commence the formal transition process to President-elect Joe Biden. Investors cheered developments surrounding the coronavirus vaccine. Data from the Australian Bureau of Statistics showed that Australia's exports increased in October on record iron ore shipments. Exports grew 6% MoM to AUD 30.53 billion in October. On a yearly basis, exports were down 3% in October. 11/24/2020 - 02:56AM (RTTNews)

European Union (EU)

Euro traded at 1.1874 against USD at 9:00 am PST. 

Germany: Business Sentiment Weakens In November

German business sentiment deteriorated in November as companies were more pessimistic about future amid the second wave of coronavirus infections interrupting the economic recovery. The business climate index fell to 90.7 in November from the previous month. The decline was largely caused by more pessimistic view about the future. The current conditions index came in at 90.0 versus 90.4 a month ago. Data released earlier in the day showed that the German economy rebounded at a faster than expected pace in Q3, offsetting a large part of the massive contraction in the Q2. GDP grew 8.5% sequentially, reversing the 9.8% decline in Q2 caused by the pandemic. In services, business climate deteriorated notably in November. For the first time since June, it was back in negative territory. Assessments of the current situation were much less positive than they were. Moreover, substantially more companies were pessimistic about months ahead. Business climate worsened in trade as well. Companies were less content with their current situation. 11/24/2020 - 03:02AM (RTTNews)

United Kingdom (UK): GBP Gains As Risk Sentiment Improves

British Pound traded at 1.3351 against USD at 9:00 am PST. 

Demand for riskier assets on Tuesday kept GBP close to the two-month high it reached the day before, with investors also hoping that this week’s Brexit talks will result in a deal. News on Monday that AstraZeneca’s vaccine for the coronavirus could be around 90% effective boosted sentiment. PM Johnson said on Monday that he hoped almost all Britons at high risk from COVID would be vaccinated against the disease by Easter. London and Brussels this week continue their negotiations to agree a deal on their future trading relationship, though time is now running very short as UK’s post-Brexit transition period ends in fewer than six weeks. Without an agreement, UK would revert to trading with the EU on World Trade Organization rules, an outcome both sides believe would disrupt their economies. Most investors believe a deal will be clinched, even if it is a bare-bones one that leaves some trade discussions for later. 11/24/2020 - 01:42AM (RTTNews)


This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.

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