US Dollar Weakens as Markets Declare Harris Winner of Presidential Debate
The US Dollar (USD) experienced a slight decline on Wednesday following news reports that Vice President Kamala Harris was seen as the victor in the recent presidential election debate against former President Donald Trump. While the victory was narrow, it is expected to impact the upcoming election polls leading to the November 5 elections.
Focus now shifts to the US Consumer Price Index (CPI) data for August, which will play a crucial role in the Federal Reserve’s decision on interest rates next week. A weaker CPI figure could prompt a larger rate cut, while a stronger number may limit the cut to 25 basis points.
Key Market Updates: Will Fed Opt for 25 or 50 bps Rate Cut?
- 63% of viewers in a CNN poll believed Harris won the debate.
- The Mortgage Bankers Association will release weekly Mortgage Applications data.
- US CPI for August will be released, with expectations for stable monthly Headline CPI and a decrease in yearly Headline CPI.
- US Treasury will allocate 10-year notes.
- Global equities are in the red, with US Futures down by 0.5% on average.
- CME Fedwatch Tool indicates a 67.0% chance of a 25 bps rate cut and a 33.0% chance for a 50 bps cut.
- US 10-year benchmark rate trades at 3.61%, a 15-month low.
US Dollar Index Technical Analysis: Waiting for Clarity
The US Dollar Index (DXY) remains range-bound between 101.90 and 100.62 since September. The upcoming US CPI release will provide more insight into the potential Fed rate cut next week. Resistance lies at 101.90, with support at 100.62 and 99.58.
US Dollar Index: Daily Chart
US Dollar FAQs
The US Dollar (USD) is the official currency of the United States and plays a significant role in global finance. The value of the USD is influenced by various factors, including monetary policy set by the Federal Reserve (Fed). Changes in interest rates and economic indicators impact the strength of the USD in international markets.