Let us check the situation of the United States dollar. There was a large net long position in the euro. Last week, it inched up to $27.922 billion.
ING said that they think the euro and the United States dollar will find good long-term demand below the 1.1600 area. Nevertheless, they require some better news on the global recovery (new stimulus, effective lockdowns, vaccines) before the euro/dollar rally fully resumes.
Kyosuke Suzuki works at Societe Generale. He is a director of the forex there. Suzuki said that few people would try to bet on the election outcome. At least they will wait until the TV debate, which will happen tomorrow.
Meanwhile, concerns are growing about the slowing recovery of the United States economy.
Moreover, many stimulus programs have expired. Thus, it curbs consumer spending.
This week will bring more data bout the health of the world’s biggest economy. That will include jobs data on Friday, a consumer data and a manufacturing survey on Thursday, and consumer confidence on Tuesday.
The United States Dollar and Other News
Per the United States dollar, the Turkish lira briefly dropped 1.6% to a record low of 7.8000.
Late last week, there was an increase in an interest rate. Thus, after that, the lira enjoyed a rare bounce. Nevertheless, the gains faded during skepticism concerning how it will filter through into market rates.
The United States dollar was off to two-month high, after the best week in almost six months.
Big net short United States dollar is pointing to the chance of a further rise.
Concerns about the infections hampered the euro. The rate hike boost fades. So, the Turkish lira was at a record low.
Before a barrage of political developments in the United States and economic data, doubts about economic recovery persisted. So, on Monday, the United States hovered near a two-month peak against a basket of currencies. There was a rebound in the United States stocks on Friday.