On Wednesday, the US dollar saw a gradual increase after the first presidential debate. The news comes as a relief after two days of consecutive fall.
The US dollar had been enjoying its two months high just last week when anxiety over the upcoming presidential elections soured investors and the stock market. However, today’s report suggests that the US dollar is getting stable again.
As per a foreign exchange expert from Commerzbank, Thu Lan Nguyen, the latest increase witnessed by the USD has nothing to do with the presidential debate. Nguyen further remarked that the debate should have, in fact, increased the stock market anxiety over possible political unrest and the effect m should have been reflected on the US dollar. However, the pullback after two consecutive days of fall is quite unnatural, she further added.
European Stocks And US Stock Futures Trade Low After Presidential Debate
After the presidential debate, the European stocks and US stock futures traded in the lower hours.
The first presidential debate between President Trump and Joe Biden has been noted for consistent interruptions by Trump over questions about taxes, the US economy, and the federal government’s handling of the COVID-19 pandemic.
Investment strategist from AMP Capital, Shane Oliver, said that the presidential debate seemed to have been dominated by Biden. Now, stock market investors are starting to worry about possibly contested election results. The effects of it can be seen in the fact that the US stock market futures traded low on after the presidential debate. So, even though the US dollar has increased, the upcoming presidential election anxiety among stock market investors have increased as well.
Meanwhile, the stock market investors are desperately waiting for new updates on the second round of the coronavirus relief package.
At $1.1722, the Euro fell by 0.18 percent against the US dollar. While the fear of the second wave of coronavirus has tensed the European economic situation, today’s early data shows positive results.
In August, the sales from retail stores in Germany increased higher than was expected. It has raised hopes that increased spending by households will help recover the economy.
US Dollar Increases By 0.28 Percent Against Swiss Franc
At 0.9218, the US dollar increased by 0.28 percent against Europe’s Swiss franc.
In September, the Swiss franc has consistently increased. Switzerland is doing much better than the rest of the world as the nation and is economy Male swift recovery from the COVID-19 pandemic.
On the other hand, Yuan is holding steady. Several surveys show growth in factory activities. Recently, the Chinese economy has shown indications of a rebound from the COVID-19 pandemic. China’s Yuan stands at 6.8141 per US dollar.
at 105.56 yen, the US dollar held steady, just below its two-week high, which was 105.75.