Dollar steadies as markets await Trump-Biden debate

In this news, we discuss the Dollar steadies as markets await Trump-Biden debate.

TOKYO (Reuters) – The dollar was stable against a basket of currencies on Tuesday as traders focused on the first US presidential debate and developments on the US stimulus bill.

The dollar index was unchanged at 94.150 = USD, moving away from a two-month high of 94.745 reached last week, as stock markets made solid gains partly on bullish Chinese data, Wall Street having rebounded after last week’s sale.

All eyes are on the first US presidential election debate where Democrat Joe Biden and Republican Donald Trump will face off later today (Wednesday 01:00 GMT).

“If the debate sidelines Trump and Biden keeps his lead, I think it might cause people to give up their dollars,” said Daisuke Karakama, chief market economist at Mizuho Bank.

“The dollar market has generally hit its lowest level since mid-September. The question is, what would the trend be in October, ”Karakama said, adding that market players are also closely monitoring any stimulus package.

House of Commons Speaker Nancy Pelosi said Monday that Democratic lawmakers were unveiling a new $ 2.2 trillion coronavirus relief bill, which was a compromise measure that reduced the costs of the economic aid.

Markets are also poised to receive a plethora of data to assess the health of the world’s largest economy ahead of the election, analysts say, including Tuesday’s consumer confidence, a manufacturing survey and data on consumers on Thursday, as well as an employment report on Friday.

The British pound outperformed other currencies, extending gains overnight on optimism over a Brexit trade deal as the European Union and Britain launched a landmark week of talks.

The British pound hit $ 1.2875 GBP = D3 in Asian trade, after hitting $ 1.2930 overnight.

Against the euro, the pound changed hands to 90.74 pence EURGBP = D3.

As the EU and Britain said a post-Brexit deal was still a long way off, European Commission chief Ursula von der Leyen said a deal was still possible.

Separately, Bank of England Deputy Governor Dave Ramsden said he believed the central bank’s key interest rate floor was 0.1%, but the BoE was “tied. to duties ”to consider pushing rates below zero.

The euro changed hands at $ 1.1678 =, with gains capped by remarks from European Central Bank President Christine Lagarde that the external value of the shared currency has an impact on inflation and that policymakers will monitor currency movements.

As Europe grapples with a surge in new COVID-19 infections, traders will look for data on consumer confidence and industrial sentiment in the eurozone for September to detect signs of impact on the economic recovery of the region.

Elsewhere, the dollar fell slightly against the yen to 105.43 yen JPY =. Data on Tuesday showed that Tokyo’s consumer staples prices fell 0.2% in September, the latest evidence of the coronavirus’ lingering impact on business activity.

Antipodes currencies gained moderately, with the Australian dollar AUD = D3 last trading at $ 0.7093 while the kiwi NZD = D3 was at $ 0.6566.

Reporting by Eimi Yamamitsu; Edited by Shri Navaratnam

Original © Thomson Reuters

Originally posted 2020-09-29 04:36:11.

Bollyinside - Latest News and Reviews
Enable registration in settings - general
Compare items
  • Total (0)