According to October 23 news, the dollar was stable against most currencies after a measures U.S. presidential debate. However, the greenback headed for weekly declines as investors waited for a breakthrough in stimulus talks in Washington and post-Brexit trade negotiations.
Moreover, the United States President Donald Trump selected a more restrained tone than in the first debate. However, exchanges again focused on the handling of the coronavirus epidemic and personal slights.
The U.S. dollar decreased by 0.03% against a basket of currencies in early trade in Europe. While the dollar reached a seven-week low on Wednesday, October 21. However, the greenback is still down nearly 0.7% for the week.
The euro remained instant against the greenback at $1,1818. The British pound also did not change and stood at $1.2084 versus the dollar.
The chief negotiators for Britain and the European Union were set to meet on Friday. This took place for negotiations on a last-minute trade deal that would stave off an explosive finale to the five-year Brexit crisis.
According to the chief currency strategist at RBC Capital Markets, Adam Cole, the main focus will be headlining on Brexit, fiscal stimulus and the prospects for the U.S. election.
Eurozone bond yields reduced because of Covid-19 cases
Eurozone bond yields reduced as business studies in France and Germany revealed the impact of the second wave of COVID-19 viruses in the bloc’s two largest economies.
Additionally, the safe-haven yen increased by approximately 0.1%. It settled at 104.71 per dollar. Paring some declines made on October 22 after Nancy Pelosi, the U.S House Speaker reported that stimulus talks had made progress.
A Biden victory, which polls predict, will probably drive the greenback’s weakness further. Especially since he’s expected to spend more on Covid-19 aid than Donald Trump.
Moreover, betting markets presented a small movement in Trump’s favour in the immediate aftermath of the debate – which supported the greenback to rise.
Significantly, the Chinese yuan also held its ground against the U.S. dollar. This followed after an official at China’s foreign exchange regulator reported it has been more stable than expected. Thus, suggesting authorities are not too worried about its recent rise.
Moreover, the Chinese yuan has boosted nearly 7.5% since the end of May as China led the global covid-19 recovery. In the last session it stood at 6.6884 per dollar in onshore trade. While on Wednesday, it decreased by about 0.5% from the 27-month record.