As Joe Biden was sworn in as the 46th President of the United States yesterday, market optimism elevated as investors look forward to a new administration, bringing with it a substantial COVID-19 stimulus package that will hopefully underpin ongoing economic growth in America. As a result of the markets positive sentiment, the Pound is also up. Cable was able to break past the 1.37 handle early this morning, and GBPEUR has surpassed 1.13.
After briefly touching the 1.37 mark overnight, GBPUSD opened at 1.3671 and found it difficult to gain any significant traction in the session. The pair finally closed at a loss, finishing the day at 1.3659.
After spiking early on Wednesday morning, the pair was able to open the day at 1.1259. GBPEUR came under some selling pressure and struggled as the day went on. Despite closing at 1.1277 – the pair has pressed on this morning and has been able to thinly maintain itself above 1.13.
EURUSD also saw losses on inauguration day. The pair started at 1.2141 and depreciated after the open, dropping to 1.2077 in the afternoon. But the pair was able to improve on its desolate performance – finishing at 1.2111.
With President Biden now officially in the White House, he has wasted no time in stamping his policy on US politics. Already, the POTUS has signed 17 executive orders, including orders to boost the federal response to the COVID-19 pandemic, and reversal of Trump’s policies on immigration and climate change. COVID-19 has already taken 400,000 lives in the US and a new office will be set-up to co-ordinate the response to the pandemic and the US will stop the process (begun by the Trump) of withdrawing from the World Health Organization.