The Calm Before the Storm: No Big Moves for the Dollar

The Calm Before the Storm: No Big Moves for the Dollar

Investors are making more conservative movements than ever, along with the US elections.

The dollar edged down in the latest trading session, shedding off gains recorded as traders flee to its protection amid market uncertainty and rising coronavirus cases worldwide.

The US dollar index, which measures the greenback’s performance against other major currencies in the world, inched lower by a modest 0.03%.

It settled at 94.037, still at a steady pace.

According to experts, investors are currently positioning themselves in the middle of the spectrum, barely favoring one outcome. 

Adding on, the market is bracing for the impact of the post-election volatility, as witnessed in the conservative movements in the recent trading figures.

The final rounds of polls indicate a sure win for the Democratic Party bet, Joe Biden. 

However, spectators are not ruling out the possibility of a surprise win for the incumbent leader, Donald Trump, nor an inconclusive result.

With this, reckless bets are avoided as volatility gauges continue to hit high thresholds. Election day results may start to come in the middle of the trading day in Asia, at the earliest.

The yen and euros both climbed to their highest since April after hiking by 11% respectively. 

Similarly, the Chinese renminbi made a strong comeback after recording a 12% hike, hovering to reach a five-year peak on Monday. 

Such occurrences indicate growing anti-risk sentiments in the market. Traders are taking away as much as they could from their greenback-dominated portfolios.

In the latest foreign exchange charts, the USD/JPY pair edged up higher by 0.06$ to 104.77. While the USD/CNY dropped by 0.07% to 6.6854.

Euros and Other Pairs Barely Made Advances nor Retreats

Across the Asia Pacific, the AUD/USD pair dropped 0.08% to 0.7047, while its kiwi counterpart added 0.05% to 0.6634.

The Aussie central bank is due to release a crucial monetary policy believed to favor the doves. Interest rates should settle at 0.1% and move towards further quantitative easing.

Spectators eye the possibility of a government bond-buying purge.

In the old continent, the euros sat above a one-month stagnation of $1.1639. The pound did not do much better after barely making a hike.

The GBP/USD pair edged up slightly higher by 0.08% to 1.2923.

Analyzing today’s movements, it can be implied that investors are cautious in their respective bets. 

Already beaten up by successive setbacks caused by the on-going problem with the pandemic, the biggest movements are not expected until a clear-cut result is sighted.

  • Support
  • Platform
  • Spread
  • Trading Instrument
Comments Rating 0 (0 reviews)