US Dollar Falls Ahead of Election, Fed Rates
The US dollar fell against its major trading partners early Monday as markets digested Friday’s weaker-than-expected October employment report.
Investors are also looking toward two major events of this week — US Election Day on Tuesday and the Federal Open Market Committee’s rate announcement Thursday following its two-day policy setting meeting.
With the results of the presidential election unlikely to be known until later in the week, the focus earlier Tuesday will be on weekly Redbook same-store sales, followed by services conditions readings from S&P Global and the Institute for Supply Management.
According to CME’s FedWatch tool, there is currently a 98.3% chance of a 25 basis point rate reduction being priced in for Thursday’s conclusion of the two-day FOMC meeting, putting the target range at 4.50% to 4.75%. The chance that the range will be lowered further to 4.25% to 4.5% is seen at 1.7%.
A quick summary of foreign exchange activity heading into Monday showed that USDEUR rose to 1.0905 from 1.0832 at the Friday US close and 1.0864 at the same time Friday morning.
The Eurozone’s manufacturing purchasing managers’ index rose slightly in October but still indicated contraction, while investor confidence increased in November but remained sharply negative, data released earlier Monday showed.
The next European Central Bank meeting is scheduled for Dec. 12.
GBPUSD rose to 1.2969 from 1.2918 at the Friday US close and 1.2910 at the same time Friday morning. There are no UK data on Monday’s schedule. The next Bank of England meeting is scheduled for Thursday, when a 25 basis point rate reduction is expected.
USDJPY fell to 151.7281 from 152.0752 at the Friday US close and 152.7121 at the same time Friday morning. Monday is a holiday in Japan, so there was no data released overnight. The next Bank of Japan meeting is scheduled for Dec. 18-19.
USDCAD fell to 1.3903 from 1.3957 at the Friday US close and 1.3931 at the same time Friday morning. There are no Canadian data on Monday’s schedule. The next Bank of Canada meeting is scheduled for Dec. 11. # US Dollar Falls Ahead of Election, Fed Rates Ghana to Import Petroleum from Dangote Refinery – Official
