Nordea Research notes that historical data suggests a drop in EUR/USD following the US Presidential inauguration on Wednesday.
"The following chart shows the change in EUR/USD in the weeks following US inaugurations since 1974. More often than not (9 out of 12 times), EUR/USD drops in the aftermath of a presidential inauguration," Nordea notes.
"Maybe a clear historical buy the rumour, sell the fact pattern? Often, a lot of stimulus is added up until and around the election date to artificially increase the momentum in the economy – the momentum often fades in the following period," Nordea adds.