The highly anticipated first US presidential debate between former President Donald Trump and Democratic nominee Kamala Harris in Pennsylvania has concluded, but how did it impact the financial markets? Let’s dive into the details.
During the debate, the focus was on key economic issues such as inflation, economic policies, and foreign policy. Trump criticized the current state of the economy, while Harris pointed out the challenges left by the previous administration. The candidates also discussed plans for healthcare, law enforcement, and the Middle East conflict.
Despite the heated exchanges, the market reaction was relatively subdued. The US Dollar saw fresh selling pressure against major currency rivals, with the USD/JPY pair sliding following comments from BoJ Nagakawa. At the time of writing, the US Dollar Index was down 0.19% to trade near 101.45.
Looking at the percentage changes of the US Dollar against major currencies, the Japanese Yen emerged as the strongest performer, while the Euro and Pound also made gains. The debate did not have a significant impact on the FX space, indicating that investors are awaiting more clarity on economic policies from both candidates.
As the latest polls show a close race between Harris and Trump, the financial markets are likely to remain cautious until more clarity emerges on the future economic direction of the country.
Analysis Breakdown:
- Economic Impact: The debate highlighted contrasting views on economic policies, with potential implications for inflation, healthcare, and law enforcement.
- Market Reaction: The US Dollar faced selling pressure against major currencies, reflecting uncertainty in the FX space.
- Investor Sentiment: The close race between Harris and Trump in the polls may lead to cautious market sentiment until more clarity on economic policies is provided.