Home News Forex Today: Dollar declines on hopes for a US fiscal deal, ahead of presidential debate – FXStreet

Forex Today: Dollar declines on hopes for a US fiscal deal, ahead of presidential debate – FXStreet

4 min read

Here is what you need to know on Tuesday, September 29:

Stock markets remain cautiously optimistic and the dollar is on the back foot, extending the reversal from last week’s moves. Investors are eyeing a slew of Federal Reserve speeches, fresh hopes related to Brexit, and the first presidential debate.

The dollar is edging lower in a risk-on mood. Talks between Republicans and Democrats continue in Washington, with House Speaker Nancy Pelosi offering a new deal worth $2.2 trillion. The fresh hopes replace the narrative that the focus on nominating a new Supreme Court Justice would divert energy from further relief.

Gold has been consolidating around $1,880, looking for a new direction. 

Investors – especially pound bulls – are also content with reports of some progress in Brexit trade talks. The EU is reportedly ready to work on a legal agreement. 

Reported coronavirus deaths have hit the grim milestone of one million, with cases increasing quickly in Europe and resuming their rises in the US.

Christine Lagarde, President of the European Central Bank, expressed concerns about the impact of the virus on the economy. Preliminary German and Spanish inflation figures for September are due out on Tuesday. 

The economic calendar features a long list of Federal Reserve speakers, with Vice-Chair Richard Clarida standing out. The Fed encouraged the government to provide more fiscal relief and does not plan to increase QE at this point. 

The Conference Board’s Confidence Confidence gauge for September is set to extend its recovery.

See US Conference Board Consumer Confidence September Preview:  Neither happy nor sad

President Donald Trump and Democrat rival Joe Biden are scheduled to clash in the first presidential debate late in the day. The incumbent is the underdog in the polls but the challenger is considered a worse debater. The narrative emerging from the event may move markets. Investors are concerned about the specter of an inconclusive election.

See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included

Oil prices have been stable with WTI trading around the $40 mark. 

Cryptocurrencies are edging lower in well-known ranges. Bitcoin is changing hands at around $10,700.

Let’s block ads! (Why?)

Source link

Comments are closed.

Check Also

2020-2021 Exchange Rate Forecasts: US Dollar Tipped To Weaken, GBP/USD Target 1.40, EUR/USD Forecast At 1.22 – ForexTV.com

Posted by: EUR Editor in EUR 1 hour ago The bank forecasts a decline in the dollar index t…