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Home » Online Forex Trading Blog » US Dollar Bid Takes Back Seat To Election

US Dollar Bid Takes Back Seat To Election

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On the eve of the US Presidential Election, currency markets were on pace as traders and market participants await the country’s pick for a new administration.  The idea led some to further unload dollar spot positions, helping the euro gain the most against the greenback since the inception of the single currency.   Greenback weakness was additionally seen against emerging market currencies as both the South African rand and Korean won made gains on the day.  Compared to yesterday’s 1.2643 close, the Euro gained to a session high of 1.3051 against the dollar before retracing at the New York cutoff.  Further easing in the money markets is also seen as improving the landscape for major currencies trading against the US dollar.  Money market rates in most economies have been on the decline, especially US dollar LIBOR.  Declining for the last two weeks, the overnight lending rate now resides 2 whole percentage points lower at 0.18 percent.

 

Helping along the dollar bears was a report this morning that showed US factory orders sliding in the month of September.  Expected to decline by 0.8 percent, orders for the month plunged by 2.5 percent and followed a 4 percent drop in the previous month according to the Commerce Department.  Although somewhat expected, the figures continue to support a pessimistic barrage of data as the world’s largest economy continues to deal with a recession.

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About the Author -

Richard C. Lee is the Chief Currency Strategist for OnlineForexTrading.com. Employing both fundamental and technical models, Richard has previously been featured on DailyFX.com, Bloomberg, FX Street.com, Yahoo Finance and Trading Markets.com. In analyzing the markets, he draws from an extensive experience trading fixed income and spot currency markets in addition to previous bouts in options, futures and equities.

One Response to “US Dollar Bid Takes Back Seat To Election”

  1. US Election On Best Political Blogs » Blog Archive » US Dollar Bid Takes Back Seat To Election

    […] US Dollar Bid Takes Back Seat To Election On the eve of the US Presidential Election, currency markets were on pace as traders and market participants await the country’s pick for a new administration.  The idea led some to further unload dollar spot positions, helping the euro gain the most against the greenback since the inception of the single currency.   Greenback weakness was additionally seen against emerging market currencies as both the South African rand and Korean won made gains on the day.  Compared to yesterday’s 1.2643 clo […]

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