Democratic candidate Kamala Harris and Republican Donald Trump remain almost tied in opinion polls and the winner may not be known even days after voting ends this Tuesday.
He dollar retreated this Monday, as investors prepared for the far-reaching implications for the world economy this week the result of the elections in the United States and a probable interest rate cut by the Federal Reserve.
The euro rose 0.7% to $1.0906. The dollar fell almost 1% against the yen, to 151.645 yen. The dollar index fell to 103.65, its lowest level in two weeks against a basket of currencies. US Treasury yields lose 8 basis points, paring some of Friday’s rise.
US elections: what the polls say about Donald Trump and Kamala Harris
Democratic candidate Kamala Harris and Republican Donald Trump remain almost tied in opinion polls and the winner may not be known even days after voting ends on Tuesday.
In recent weeks, investors increasingly positioned themselves in favor of a Trump victory and they expected his policies on immigration, tax cuts and tariffs to put upward pressure on inflation, bond yields and the dollar. Harris is seen as the continuity candidate.
Strategists said thatDollar weakness on Monday was linked to a poll that showed Harris with a surprising three-point lead in Iowa. Another New York Times/Siena College poll showed Harris slightly ahead in Nevada, North Carolina and Wisconsin, and Trump barely ahead in Arizona, among the handful of battleground states where the election is most competitive.
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“Polls suggesting that Harris could have an advantage in a couple of swing states are causing some profit taking in the Trump market,” said Kenneth Broux, head of corporate currency and rates research at Societe Generale.
“Markets are very tense – long dollars, short Treasuries – ahead of tomorrow’s vote, so it’s natural that we are adjusting some of those positions.”
Betting site PredictIT showed Harris at 53 cents and Trump at 52 cents – what investors are willing to bet on a chance to win $1 – up from 45 cents and 59 cents, respectively, just a week ago. .
Source: Ambito
