The euro continued to gain against the US dollar on Wednesday morning. The European single currency is now worth 1.2325 USD, the highest level since April 2018. An expensive euro makes imports cheaper, but exports outside the trading bloc become more expensive.
It is mainly the dollar that is under pressure due to the exciting Senate elections in Georgia. It will depend on whether Republicans retain control of the Senate and whether new Democratic President Joe Biden encounters opposition to pursuing his own political agenda.
In addition to the political activity, this week also looks forward to a range of macroeconomic data, including the US labor market. The US Federal Reserve will publish its minutes for interest rate policy on Wednesday evening.