EUR / USD rose above 1.1850 with the start of the Biden transition and amid optimism regarding a coronavirus vaccine. German GDP data and Germany's IFO Business Climate overcame the forecast.
Good US data which made the US dollar strengthen, triggered the decline in GBP / USD on Monday. But the safe-haven US dollar fell again after President Donald Trump authorized the General Services Administration to facilitate a transition to Biden. A smoother transition provides a better chance to tackle Covid-19 and pushes the economy upward, pushing the safe-haven US dollar down.
The appointment of Janet Yellen as the new candidate for Finance Minister is delighting to the market because she as the former governor of the Fed will support the fiscal stimulus but still not jeopardize free trade.
Investors also seem to be calmer in response to the next Covid - 19 vaccine news. British pharmaceutical company AstraZeneca and the University of Oxford have published the results of a promising Phase 3 trial. For the authorization of an emergency vaccine, it is likely to be implemented in the UK next week.
Meanwhile, coronavirus cases in the European continent have continued to decline, in contrast to the United States which has experienced a rise, a factor that supports the rise in the common currency of Europe.
Overall market sentiment is pointing to a bullish run on EUR / USD with immediate resistance awaiting 1.1895 which if EUR / USD is successfully passed will continue to 1.1905 and then 1.1920. The decline will be met with the nearest “support” EUR / USD at 1.1850 which if it is successfully passed will continue EUR / USD to 1.1815 and then 1.1800.