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Dollar and Euro Decline on Market, Despite Recent Rally
This week in the world and in Ukraine, there was a very active geopolitical and economic scene, which was reflected on all financial and raw materials markets worldwide. On the currency market, all these tensions once again triggered a rally in the EUR/USD pair and forced all investors to cheer. The main political event, of course, were the mid-term elections in the US on November 3, which ended with a serious defeat of Republicans and a transfer of Congress and the Senate, as well as parts of key American states to the Democratic Party. This leads to a reconfiguration of all internal political scenarios in the US and strengthens the control of the society over the decisions of US President Donald Trump compared to what was earlier. Although Trump has already announced his readiness to work with the new Congress and Senate, he still has the right of veto on many decisions of American lawmakers. As to what the relationship between the White House and the new Congress will be, it is still unclear. The political uncertainty after the mid-term elections has weakened the dollar in the EUR/USD pair on the global currency market, which has intensified the positions of the euro. However, the euro also has many problems: starting with unresolved issues related to France's (one of the two main economic locomotives of Europe) debt, intrigues before the upcoming elections in Spain, and ending with the preservation of the EU's full dependence on the price of energy. The main issue here is oil, whose price, despite all efforts of the US to reduce it, remains at a high level — around $98 per barrel of the BRENT mark, despite periodic rumors about a possible partial resolution of the situation in the Middle East. However, the unresolved issue of the end of the US-Iran war and the problem of the safe passage of ships through the Strait of Hormuz only exacerbates investors' fears about the prospects of the entire global economy. The threat of a global recession scares all players on the global market.