US dollar edged lower on Wednesday after markets declared Harris the winner of Tuesday’s presidential debate.

The US dollar (USD) fell slightly on Wednesday, with some news outlets reporting that Vice President Kamala Harris had won the presidential election discussion between her and former US President Donald Trump. However, the victory is small, not a landslide. Kamala Harris is expected to gain a few points in the polls. But it will still be a close call for the November 5 elections.This week’s economic data will be dominated by the release of the US Consumer Price Index (CPI) for August.

The Fed’s final consideration before its decision next week will be August’s US CPI statistics.

Markets view this as the final data point before the US Federal Reserve (Fed) and its Federal Open Market Committee (FOMC) make their interest rate decision next week. A weaker CPI data would allow for a 50 basis point rate drop, whilst a steady or stronger CPI number may limit the outcome to a 25 basis point rate decrease.

Daily Market movers: 25 or 50 basis point rate cut?US Dollar Index falls again below 101.50 and could fall further if US inflation is lower than projected.

According to a CNN poll, 63% of viewers thought Harris had won. Bloomberg reported on the presidential election debate.
The Mortgage Bankers Association will reveal its weekly mortgage application numbers for the week ending September 6 at 11:00 GMT. Prior week, there was a 1.6% increase, with no forecast available.
The US consumer price index (CPI) for August will be issued at 12:30 GMT.
Monthly Headline CPI inflation is projected to remain unchanged at 0.2%.
Yearly headline CPI inflation is predicted to fall to 2.6% from 2.9%.

Monthly Core CPI inflation is expected to remain at 0.2%.

Monthly Core CPI inflation is expected to remain at 0.2%.
Annual Core CPI inflation is predicted to stay at 3.2%.
At 17:00 GMT, the US Treasury will distribute 10-year notes.
Equities are underperforming, with Asian equities ending down more than 1% on Wednesday. European stocks are in the red. , but less than 0.5 percent. Meanwhile, US futures are down 0.5% on average.
The CME Fedwatch Tool predicts a 67.0% chance of a 25 basis point (bps) interest rate drop by the Fed on September 18. Compared to a 33.0% chance of a 50 bps cut. Another 25 basis point drop (assuming September is a 25 basis point cut) is projected by 27.2% for the November 7 meeting, with a 53.2% likelihood that rates will be 75 basis points (25 bps + 50 bps) lower. And a 19.6% chance that rates will be 100 basis points lower.
The US 10-year benchmark rate is at 3.61%, a new 15-month low not seen since mid-June 2023.