Stocks rocket higher, dollar dumps in the post-election hours

By Peter Bukov|

Published: November 05 2020, 08:42 GMT+0

Stocks rocket higher, dollar dumps in the post-election hours

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So far, it looks like Joe Biden will be the next American president. However, fraudulent behavior has been reported from 2-3 key states.

Therefore, Trump’s campaign team is asking for recounts, and his team of elite lawyers will look into those issues. 

However, Democrats will not have a majority in the Senate, meaning that Trump-era tax cuts may not be rolled back, at least not immediately. The extra-large stimulus package promised by Dems won’t happen since Republicans are against it. 

Nevertheless, as we previously said many times, anything is bullish for stocks, and US indices rose 3-5% yesterday. It doesn’t really matter who wins – there will be a stimulus sooner or later (maybe more rounds), and the Fed will continue in its ultra-loose monetary policy. 

The greenback was sold-off as, again, both candidates should be bearish for the USD because of the mentioned reasons. And lastly, metals soared today as fundamentals remain bullish, whoever wins. 

Later in the day, the FOMC meeting concludes, and it might sound dovish again, which should add more fuel to the ongoing and neverending rally in stocks. Moreover, it looks like another impulsive wave is starting in the EURUSD pair, which could bring the pair to retest the 1.20 handle, despite Europe being shut down due to various lockdowns.