Tuesday, November 29, 2022

Dollar Edges Higher; Presidential Uncertainty Remains By Investing.com


© Reuters.

By Peter Nurse

Investing.com – The dollar edged higher in early European trade Friday, with the result of the contentious U.S. presidential election still unknown and the possibility of a legal battle likely to lead to prolonged uncertainty.

At 2:45 AM ET (0745 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, was up 0.1% at 92.537. rose 0.1% to 1.1838, fell 0.1% to 103.44, while the risk sensitive fell 0.2% to 0.7269.

The U.S. presidential battle still remains undecided early Friday, but Democratic candidate Joe Biden has an edge over President Donald Trump, with a few important states still counting votes.

Trump’s legal challenges to vote counts in Nevada, Pennsylvania, Georgia and Michigan have so far had no effect.  

Trump has also questioned the election’s credibility. “If you count the legal votes, I easily win. If you count the illegal votes, they can try to steal the election from us,” he said late on Thursday, as usual without presenting any evidence. 

“FX markets have reacted to news of a much closer U.S. election by selling currencies most exposed to the global recovery story and buying USD and JPY,” said ING analyst Chris Turner, in a research note. 

“Certainly, the prospect of at least smaller fiscal stimulus, if not an outright contested election – combined with poor Covid-19 trends – favor more defensive positioning this month.”

Uncertainty about the U.S. economic recovery from the pandemic is also growing, along with the number of Covid-19 cases, with Wednesday’s data and Thursday’s both disappointing. This put the focus squarely on October’s data, due later in the day, which is forecast to show a slight slowdown in job creation.

The Federal Reserve kept its unchanged on Thursday, but Chair Jerome Powell stated that more fiscal and monetary support was needed as rising coronavirus cases clouded the outlook for the economic recovery.

Elsewhere, fell 0.1% to 1.3138, edging lower after Thursday’s strong gains on the back of the Bank of England deciding to increase its to try and support the country’s weakening economy.

EU Internal Market Commissioner Thierry Breton said Friday there was only a “50/50” chance that Britain and the European Union will be able to reach a deal over the terms of Britain’s exit from the EU.


Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories