US Dollar Slides Ahead of Presidential Debate
The US dollar fell against its major trading partners early Thursday ahead of a busy day of economic data releases, and presidential debate.
Data releases this week have so far failed to convey any compelling story in US macro: consumer confidence was a bit weaker than expected yesterday, according to ING note,
The first presidential debate between President Joseph Biden and former President Donald Trump is scheduled to begin at 9:00 pm Thursday evening.
A quick summary of foreign exchange activity heading into Thursday showed that USDEUR rose to 1.0702 from 1.0681 at the Wednesday US close and 1.0686 at the same time Wednesday morning.
Eurozone consumer confidence improved slightly in June but remained pessimistic while the business climate reading deteriorated further, according to data released earlier Thursday.
GBPUSD rose to 1.2650 from 1.2622 at the Wednesday US close but was below a level of 1.2654 at the same time Wednesday morning. There were no UK data released overnight. The next Bank of England meeting is scheduled for Aug. 1.
USDJPY fell to 160.5328 from 160.8009 at the Wednesday US close but was above a level of 160.3261 at the same time Wednesday morning.
Japanese retail sales rose solidly in May, lifting the year-over-year rate, data released overnight showed. The next Bank of Japan meeting is scheduled for July 30-31.
USDCAD fell to 1.3687 from 1.3700 at the Wednesday US close and 1.3694 at the same time Wednesday morning. Canadian weekly earnings for April are due to be released at 8:30 am ET. The next Bank of Canada meeting is scheduled for July 24.
The dollar continues to lack a significant trend and remains to the topside of a two-month trading range, ING analyst Chris Turner said in a note. US interest rate volatility remains subdued and that means interest has resumed in the yen-funded carry trade.
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