Markets waited for the economic data, including German inflation, signs of progress in United States fiscal stimulus talks, and the first debate between the U.S. presidential candidates. Thus, on Tuesday, the U.S. dollar index slipped from recent two-month highs.
Markets turned cautious and sought safer assets. Thus, the United States dollar gave up some gains after racking up its most significant weekly gains. On Tuesday, the U.S. dollar edged down. It was ahead of the debate between Democratic challenger Joe Biden and President Donald Trump.
Investors looking for a steer on the candidates’ prospects will watch the 90-minute televised debate at 0100 GMT (9 p.m. ET).
ING strategists told the client in a note that a rise in Trump’s perceived changes will most probably boost the United States dollar. Nevertheless, the non-negligible risk of a contested outcome (and ultra-dovish Federal Reserve) can keep the upside of the dollar somewhat capped in the run-in to the vote.
United States
Commerzbank EM and FX analyst, You-Na Park-Heger said that whether Trump will accept the result if he was defeated, or trigger a period of uncertainty, is the decisive factor of the United States dollar.
Furthermore, she wrote that the debate would provide any new insights in this respect. Thus, they do not forecast it to move EUR-USD in a major way.
On the day, at 1104 GMT, the United States dollar, against a basket of currencies, was down around 0.1% at 94.033.
Craig Erlam works at OANDA. He is a senior market analyst there. Thus, Erlam said that in the short term. The United States dollar rebound can continue. Tuesday’s pause can be because of the month-end profit-taking. Investors wait until after the debate enters new positions.
Erlam said that they think there will be an overall view of ‘step aside.’
Riskier currencies strengthened, but European shares were down.
That is the news of the United States market.
