He global dollar rose this Monday and the cryptocurrency bitcoin hit a three-month high as a rise in U.S. bond yields and the looming Nov. 5 presidential election in USA They continued to impact the markets.
He dollar indexwhich measures the greenback against its main rivals, rose 0.17% to 103.63. Friday’s session closed with a drop of 0.3% as risk appetite increased after China announced more details of its stimulus package, but posted gains of 0.55% for the week.
Currency movements last week were driven by the moderate rate cut of the European Central Bank (ECB) and strong U.S. data that lowered expectations about how quickly U.S. interest rates may fall. Federal Reserve (Fed), particularly if the former president donald trump wins the presidency.
The euro fell 0.16% to $1.0849 and the pound sterling fell 0.18% to $1.3025.
“In USA We’ve had some relatively strong data, starting with the jobs report at the beginning of the month. We have had decent retail sales, GDP is doing quite well this quarter. On the other hand, Europe is not doing so well, the ECB is dovish… so there has been a history of divergence,” said Erik Nelson, macro strategist at Wells Fargoto Reuters.
The euro has fallen more than 3% in three weeks and has broken through its 200-day moving average, and is near a two-and-a-half-month low.
Polls showing Republican Trump’s improved chances of winning the US election are also helping the dollarsince it is considered that their proposals for tariff policies and taxes will likely keep interest rates high and hurt trading partners.
Bitcoin was boosted by expectations that the Trump administration will take a softer stance on cryptocurrency regulation. The cryptocurrency fell 0.1% to $68,333, having earlier reached $69,487, its highest level since late July.
For his part, the yen was down 0.24% at 149.89, having previously broken above the 150 level, which it did briefly last week for the first time since early August.
The clearest way to express Trump’s tariff risk was to buy dollars against the euro, Swiss franc and Mexican peso, said Chris Weston, head of research at Australian online broker Pepperstonein a note.
“Traders need to decide if now is the right time to start trading with greater conviction,” Weston said.
With no major economic events scheduled for this week, market attention will focus on corporate earnings and the US elections.
General elections will be held on Sunday Japan. Although opinion polls differ regarding how many seats the ruler will win Liberal Democratic Party (LDP), markets are optimistic that, along with its junior coalition partner Komeitothey will prevail in power.
Source: Ambito
