Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
By Hideyuki Sano
TOKYO, Nov 24 (Reuters) - The yen was on the back foot while
riskier currencies were supported on Tuesday on rising optimism
following news U.S. President-elect Joe Biden is expected to tap
former Federal Reserve Chair Janet Yellen as U.S. Treasury
Secretary.
Also underpinning the risk-on mood, President Donald Trump
gave the head of the General Services Administration the
go-ahead to proceed with a transition for Biden's administration
despite plans to continue with legal challenges. Yellen has called for increased government spending to boost
the U.S. economy out of a deep recession brought on by the
coronavirus and has frequently cited growing economic inequality
in the United States as a threat to America's values and its
future. "One thing is for sure and that is there is unlikely to be
as many Fed-Treasury spats," said Chris Rupkey, chief financial
economist at MUFG Union Bank in New York.
"Those Fed lending facilities for municipal funding, the
corporate bond market and Main Street will be coming back
quickly after the December 31 expiration date."
Last week U.S. Treasury Secretary Steven Mnuchin let some of
the Fed's lending programmes expire at the end of this year,
opening a feud with the Fed, which said those emergency
facilities are important to support the economy. The safe-haven yen traded at 104.49 per dollar JPY= ,
having slipped about 0.6% overnight.
The U.S. dollar, which tends to weaken against riskier, less
liquid currencies on positive market sentiment, also flirted
near 12-week lows, though it has managed to find some technical
support.
The dollar's index =USD recovered a touch to 92.530 after
dropping to 92.013 on Monday, the lowest since Sept. 1. A
conclusive break on the dollar index below support at around 92
could bring about a fresh downturn, analysts said.
The U.S. currency's safe-haven appeal was also dented after
AstraZeneca AZN.L said on Monday that its COVID-19 vaccine
could be about 90% effective and it would prepare to submit data
to authorities around the world that have a framework for
conditional or early approval.
The euro was flat at $1.18395 EUR= , lacking momentum to
clear a hurdle at $1.19.
The Australian dollar ticked up 0.15% to $0.7295 AUD=D4
while the New Zealand dollar NZD=D4 also edged 0.10% higher to
test a two-year high of $0.6967 hit on Monday.
The British pound held firm near a 12-week high against the
dollar and six-month high versus the euro, propped up by bets
Britain and the European Union would clinch a Brexit trade deal.
London and Brussels this week continue their negotiations to
agree a deal on their future trading relationship, though time
is now running very short as Britain's post-Brexit transition
period ends in fewer than six weeks.
The pound stood at $1.3330 GBP=D4 , having hit a high of
$1.3396 on Monday. Against the euro, it traded at 0.8887 to the
euro EURGBP=D4 , near its six-month high touched about two
weeks ago.