Last night, U.S. President Donald Trump issued a statement via Twitter committing to an “orderly transition of power.” The move came on the heels of Wednesday’s massive protests in Washington D.C. and breach of the U.S. Capitol Building. Although not a concession, Trump’s video statement admitted that Democratic challenger Joe Biden will be the next POTUS. Forex traders have taken the developments as good news for the USD, bidding the Greenback higher vs the majors.

This week has been a big one in U.S. politics. Tuesday marked the Democratic party securing control of the Senate and Wednesday brought Congressional certification of December’s Electoral College vote. In the meantime, Washington D.C. saw a historic pro-Trump rally and subsequent breach of the Capitol. Amid the chaos, Trump’s Twitter feed was surprisingly shut down ― a controversial move and one that will likely be a part of future litigation.

However, Trump is back on Twitter and has issued a few statements in the past 12 hours. Here are the highlights:

“The 75,000,000 great American Patriots who voted for me, AMERICA FIRST and MAKE AMERICA GREAT AGAIN, will have a GIANT VOICE long into the future. They will not be disrespected or treated unfairly in any way, shape or form!!!”

“To all of those who have asked, I will not be going to the Inauguration on January 20th.”

For all intents and purposes, it appears that Joe Biden will officially take office later this month. Thus far, the USD is benefitting from receding political uncertainty.

USD/JPY On The Comeback Trail

For the third straight session, the USD/JPY is posting nice gains. In fact, this week has been the biggest for the USD/JPY since mid-November. If the rally continues, a shorting opportunity may set up from December’s High (104.75). Stay tuned.

Overview: In twelve days, the Trump era of American politics will officially come to an end. In its place, a period of unprecedented economic uncertainty will ensue. Democrats are soon to control both Congress and the White House ― essentially, they have a blank check to conduct business as deemed fit. If history has told us anything, tax-and-spend economics, increased regulation, and accommodative foreign trade policies will be back in style. Only time will tell how the USD and the markets, in general, will react.