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The dollar also folds against Biden and Yellen: falls against the euro, the 'aussie' and the 'kiwi'


The appetite for risk that has been unleashed in the currency market after the announcement that the US presidency begins the transition to the administration of Democrat Joe Biden continues to pump the euro and the New Zealand and Australian dollars on Tuesday. On Monday, news that President Donald Trump had finally relented and the transfer of powers was beginning pushed the European currency to highs in more than two weeks at $ 1.19.

The shared currency remains slightly below this price, while attention shifts to kiwi, which has hit highs since 2018, after the country's government sought advice from the central bank on how it could help stabilize property prices, prompting investors to ditch some bets for more monetary facilities.

But the weak dollar is the big news after Trump gave the head of the General Services Administration the go-ahead to proceed to transition to a government led by Biden, despite plans to continue legal challenges to the elections.

In addition, the almost certain appointment of the former president of the Federal Reserve, Janet Yellen as Secretary of the Treasury, which has encouraged investors as he has called for an increase in government spending to pull the economy out of a coronavirus-induced recession.

"That should be a positive appointment from a market point of view, as expected to follow conventional policies", the strategists of the Commerzbank have pointed out in a daily note." And as for the fiscal package, it is likely that it will listen to the demands of the Federal Reserve and try to promote an aid plan as much as possible, "they indicate.

Yellen has called for the opening of the tax expenditure tap to revive an economy torn apart by the coronavirus pandemic. It should be noted that he would be the first person to have been placed in charge of the Treasury, the Federal Reserve and the Council of Economic Advisers of the White House.


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