Hi everyone! In this video review, we are going to talk about Joe Biden’s recent decision and the impact of political and economic factors on the main forex currencies. Let us get started!
Stock markets across the globe declined sharply yesterday following Bide’s decision to keep Jerome Powell as Fed chair. Investors fear that Powell may start aggressively tightening monetary policy as he did in 2018 during his first term. The US dollar, on the contrary, advanced amid such news. Yesterday, we mentioned the upcoming correction and the greenback’s drop to 96.40. The situation has not changed significantly since yesterday and the target level remains the same. Besides, the greenback is now lacking drivers to resume the upward movement. So, the quotes are expected to slightly fall from 96.47 in the near future.
Yesterday, we forecast a drop in the dollar/yen pair. Yet, it started falling only today at the beginning of the Asian session. The price failed to break through the resistance level of 115.20. So, it is highly likely to enter a correctional phase and hit the level of 114.40. We mentioned such a scenario a few days ago. However, in the long term, the pair may gain momentum but it will happen only after the correction.
The AUD/USD pair resumed the downward movement. The correction we discussed a few days ago was very short and lasted only one day. Now, its trajectory will depend on technical indicators and the economic situation. Analysts expect the pair to decline to 0.7150.
That’s all for now. Today, the US will unveil a batch of macroeconomic reports. For instance, traders are anticipating the second estimate of US GDP for the third quarter and the initial jobless claims report. The household spending and new home sales reports are due today as well. The University of Michigan will publish the final estimate of the consumer sentiment index for November.

00:00 Intro
00:15 USDX
01:05 USD/JPY
01:38 AUD/USD

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