The United States Dollar Slipped, Markets wait for Debate

Let us track changes in the market. On the day, the Australian dollar was up 0.6%. Meanwhile, the New Zealand dollar increased by 0.5% to 0.6583. Thus, both recovered from sharp falls last week.

At 1055 GMT, the yen was steady against the United States dollar.

Also, markets were waiting for developments in talks about aid for people affected by the COVID-19 in the United States.

On Monday, United States House of Representatives Speaker Nancy Pelosi said that Democratic lawmakers were unveiling a new $2.2 trillion fiscal stimulus bill. Moreover, she said that it was a compromise and less costly. It is because it covers a shorter period.

Hopes for a Brexit deal boosted the sterling. Thus, the pound strengthened. The Bank of England’s deputy said that he thought the floor for the central bank’s key interest rate was 0.1%.

On the day, the euro was up 0.2% at $1.1687. Against the euro, the Swiss franc was steady at 1.0786.

Dollar and Others

European Central Bank policymakers are divided concerning how to steer Europe’s economy through the second wave of coronavirus infections.

Because of the coronavirus, more than one million people have died globally.

At 1200 GMT, German inflation data for September will come out. According to a Reuters poll, it will come in at -0.1%.

ING wrote that today EUR/USD should test 1.1700, barring negative CPI read in Germany. It is ahead of the United States Presidential debate. Furthermore, improved sentiment can take some support off the United States dollar.

At 1400 GMT, the United States consumer confidence data will be out.

Markets sought safe assets and turned cautious. So, after racking up its most significant weekly gains, the United States dollar gave up gains. The United States dollar edged down on Tuesday.

Against a basket of currencies, the United States dollar was down around 0.1% at 94.033.

That is the current situation of the dollar and the market.