US Dollar’s market activity is rather quiet.
US Dollar (USD) remained steady on Tuesday, with the US Dollar Index (DXY), which tracks the Greenback’s value versus six major currencies, trading slightly below 104.00 and holding onto key technical support as markets prepare for the US presidential election. Chances that markets will know whether Vice President Kamala Harris or former US President Donald Trump The chances of claiming victory by Wednesday are minimal. Even before voting began, 165 lawsuits filed alleging election fraud and recount demands.
This could mean that the 60th presidential election will have more legal uncertainty than the 46 days witnessed in 2000 when George W. Bush won. Only a landslide victory by many points may prevent a court struggle that would throw markets into turmoil as the year ends.
The S&P Global and Institute for Supply Management (ISM) Services Purchase Managers Index (PMI) final readings for October included on the US economic calendar. Preliminary readings are unlikely to reveal any significant changes.
Daily Market Movers: Harris vs. Trump Showdown. US Dollar index trades barely around 104.00, clinging to key technical support.
Watch for headline risk on Tuesday and Wednesday in the event that no clear winner emerges from the 60th US presidential election.
At 13:45 GMT, S&P Global will issue the final reading for October’s PMI. The Services PMI projected to remain unchanged from the preliminary reading of 55.3, while the Composite PMI is expected to be steady at 54.3.
At 15:00 GMT, the ISM will release its final reading for October’s services sector. The ISM Services PMI is predicted to drop slightly to 53.8 from 54.9.
The US Treasury is auctioning a 10-year note about 18:00 GMT, ahead of the first possible headlines from the US presidential election.
Asian markets performed strongly on Tuesday, with Japanese and Chinese indices closing in the green.
Asian markets performed strongly on Tuesday, with Japanese and Chinese indices closing in the green. European equities appear lethargic ahead of the US presidential elections, while US equity futures suggest mildly positive results.
The CME FedWatch Tool predicts a 25 basis point (bps) interest rate drop by the Federal Reserve (Fed) during Thursday’s meeting with a 98.0% chance. The December 18 meeting is more interesting, with an 81.7% chance of a 50 basis point interest-rate decrease from the current level, implying that markets predict a rate cut this week and in December.
The US 10-year benchmark rate is trading at 4.30%, down from Friday’s finish of 4.38%.
