The cable remains on its ascending course in spite of, or perhaps precisely because of, all of the recent developments. The BioNTech and Pfizer vaccine news coupled with Moderna's promising performance have reinvigorated investors' enthusiasm. Markets are riding high at present because investors believe that such a game-changing vaccine would allow global economic activity to reach pre-pandemic levels swiftly.
Meanwhile, Joe Biden's victory in the US elections has stirred additional volatility as his policies at the White House are prone to be starkly different from the protectionist agenda of Donald Trump. The new administration in Washington is almost certainly bound to open up new possibilities for the global markets, which would undoubtedly affect the underlying supply and demand equilibriums for multiple assets.
In other words, the greenback suffered from all of these recent developments as investors look at them with optimism, which consequently weighs down on the global demand for the world's most convertible currency.
As regards the recent economic developments, the poor retail sales data in the US from yesterday stifled the demand for the dollar even more. In contrast, the current bullish run of the pound was not impeded even by the poor GDP data of the British economy in Q3; nor was it weighed down by the rising unemployment rate.
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