Traders assessed a debate Between United States President Donald Trump and his challenger, Joe Biden. Thus, on Wednesday, the dollar ticked up in Europe, recovering some losses after a two-day fall.
Against a basket of currencies, the dollar index crept above the 94 marks. It was after two days of losses that followed the dollar reaching a two-month high last week.
Thu Lan Nguyen works for Commerzbank. She is a foreign exchange strategist there. Nguyen said that she does not think that the United States dollar recovery relates to the TV debate. If anything, it has increased United States political risks and should weigh on the U.S. dollar.
Moreover, Nguyen added that instead, we see a natural pullback after the sharp depreciation in the last two days. She thinks it is natural.
European stocks and United States stock futures traded lower hours after the debate. Trump repeatedly interrupted the discussion in a chaotic encounter in which the candidates battled over the president’s leadership on the taxes, coronavirus pandemic, and economy.
The situation of the United States
Shane Oliver works for AMP Capital. He is head of investment strategy there. Oliver said that he thought Biden did well. Thus, it is no surprise now to see the United States share market futures down. It is because investors have gone back to worry concerning a contested election, whether Trump will go peacefully if he loses, and a delay in the outcome.
Also, traders focused on a United States fiscal stimulus packaged to cushion the coronavirus blow.
Against the United States dollar, the euro lost 0.18% at $1.1722. Recently, economic indicators have painted an uneven picture of the economic recovery in Europe. Nevertheless, the morning data was generally positive.
In August, German retail sales rose more than forecasted. Thus, it rose hopes that household spending may power recovery in the third quarter from the coronavirus shock.
That is the current news of the market.