Dollar ticks up after Trump/Biden debate
- The dollar index against a basket of currencies crept above the 94 mark, after two days of losses that followed the dollar reaching a two-month high last week.
LONDON: The dollar ticked up in Europe on Wednesday, recovering some losses after a two-day fall, as traders assessed a debate between President Donald Trump and his challenger, Joe Biden.
The dollar index against a basket of currencies crept above the 94 mark, after two days of losses that followed the dollar reaching a two-month high last week.
"I don't think that the USD recovery is related to the TV debate, which has, if anything, increased US political risks and should weigh on the USD", said Thu Lan Nguyen, a foreign exchange strategist at Commerzbank.
"Instead, we are seeing a natural pullback after the sharp depreciation in the last two days, which I think is natural", she said.
US stocks futures and European stocks traded lower hours after the debate, marked by Trump's repeated interruptions in a chaotic encounter in which the candidates battled over the president's leadership on the coronavirus pandemic, the economy and taxes.
"I thought Biden did pretty well and so it's no surprise to now see US share market futures down as investors have gone back to worrying about a contested election, a delay in the outcome and whether Trump will go peacefully if he loses", said Shane Oliver, head of investment strategy at AMP Capital.
Traders also focussed on a US fiscal stimulus packaged to cushion the coronavirus blow.
The euro lost 0.18pc against the dollar at $1.1722. Economic indicators have recently painted an uneven picture of the economic recovery in Europe, but the morning data were generally positive.
German retail sales rose more than expected in August, raising hopes that household spending will power a recovery in the third quarter from the coronavirus shock.
The dollar rose 0.28pc against the Swiss franc at 0.9218 franc, after falling as low as 0.9191 franc overnight.
Switzerland's KOF leading indicator hit a 10-year high in September, rising for the fourth time in a row as the economy extended its recovery from the coronavirus.
China's yuan held steady even after twin surveys showed strong factory activity growth, which backed recent signs of a rebound in broad sectors of the world's second-biggest economy.
The offshore yuan steadied at 6.8141 per dollar.
Against the yen, the dollar was steady at 105.56 yen, below a two-week high of 105.74 overnight.
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