Dollar Awaits US Vote Result, Euro Volatility Jumps
The dollar gauge is slightly weaker ahead of US vote results as polls show a deadlocked presidential race. Euro volatility eyes the biggest daily rise since 2008.
The Bloomberg Dollar Spot Index slips 0.1%, second day of declines.
“The dollar has softened a bit as we wait for polls to close and results to roll in,” said Aroop Chatterjee, a strategist at Wells Fargo. “There has been some lightening of USD longs to start the week and a weaker USD as Harris has shown some momentum”.
“We think more decisive USD moves are likely post 8pm ET as we start to get results from key swing states,” he said.
EUR/USD rose 0.2% to 1.0894, while overnight volatility heads for its biggest daily increase since the global financial crisis.
AUD/USD gains the most in the Group of 10, traded 0.7% up at 0.6629.
Australia’s central bank held its key interest rate at a 13-year high as expected, marking a year at that level, and restated that it isn’t “ruling anything in or out” on policy.
“We expect a cut in 2Q next year but further support to the Chinese economy could affect that,” wrote Kit Juckes, chief FX strategist at Societe Generale SA.
USD/JPY fell 0.1% to trade at 152.02; Democratic Party for the People leader Yuichiro Tamaki said Bank of Japan monetary policy should stay on hold a while longer.
The yen was lagging behind its peers in the Group of 10 in gains.
GBP/USD climb 0.2% to 1.2986, heading for a third day of gains.
Source : Bloomberg
