What Happened
- Per the Bloomberg Dollar Spot Index, USD had its weakest November ever
- Record risk-taking after COVID-19 vaccine developments sank the buck by 2.4%
- The pandemic is not going away yet, and there are lockdowns, yet the U.S. Dollar lost its safe-haven appeal and reached fresh two-year lows
- Sterling climbed by 3.1% with reportedly new hopes for a post-Brexit deal after key departure
- Petro-currencies and other commodity-based currencies resurged, benefitting from the MSCI World Index hitting an all-time record high
Tempus’ View
- Greenback restrengthening possible if a fiscal package miraculously agreed on
- Although vaccine news has excited markets, fundamentals must improve for any momentum to be sustained
- Anxiety in Europe over the implementation of rescue funds could revert some Euro gains
- Brexit could still turn into an uglier mess as London financial community begs for clarity on all and Scotland seeks independence
- December could bring even more surprises as a unique 2020 comes to a hopeful end
Interested in reading more? Enter your name and email to dive into the details.
