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Sun 14 Jul 2024 16:02GMT

Markets Readjust Positions in Anticipation of Tonight’s US Presidential Debate

Published: 29 Sep at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, Germany,

Pound Sterling (GBP)
The Pound was a little weaker today, and the currency struggled to hold yesterday’s advances. UK retailers continue to express concern about the impact of the coronavirus pandemic, while Pound investors await the final scheduled round of Brexit talks.

UK-EU negotiations will last until Friday, when the final scheduled set of negotiations will end. If there are any signs of optimism or a potential breakthrough in talks, the Pound could see a surge in demand in the coming sessions.

Euro (EUR)
Today’s Eurozone confidence stats were mixed. However, markets cooling from last week’s rise in coronavirus pandemic fears helped the Euro to recover some lost ground today overall.

Tomorrow will see the publication of Germany’s August retail sales results. Comments from European Central Bank (ECB) President Christine Lagarde could also cause some Euro movement if they surprise investors.

US Dollar (USD)
After a week of strong performance, the US Dollar steadied today. US Dollar investors are hesitant to make big moves on the currency ahead of tonight’s upcoming US Presidential Debate.

The first televised debate between US President Donald Trump and Democrat Challenger Joe Biden will be held during tonight’s American session. A strong debate showing from President Trump could calls polls to tighten and uncertainty to rise, which may boost the safe haven US Dollar.

Australian Dollar (AUD)
The Australian Dollar rebounded today, as investors steadied on risk-correlated currencies ahead of tonight’s US Presidential Debate. Speculation that the Reserve Bank of Australia (RBA) would cut interest rates in November rather than October also helped the ‘Aussie’ to recover slightly.

Australian building permits are unlikely to be too influential tomorrow. Australian Dollar investors will instead focus on how the US Presidential Debate influenced global risk and trade sentiment.

New Zealand Dollar (NZD)
The New Zealand Dollar’s rebound has been limited by lasting speculation that the Reserve Bank of New Zealand (RBNZ) could introduce negative interest rates. GBP/NZD still slipped yesterday, but not as much as some other Pound pairings.

The New Zealand Dollar has potential for further gains if tonight’s US Presidential Debate leaves investors more willing to take risks. Upcoming New Zealand business confidence data may also influence the ‘Kiwi’.

Canadian Dollar (CAD)
Rising coronavirus cases in Canada, as well as weaker oil prices, left the Canadian Dollar among the weaker major currencies today. CAD investors are also awaiting tonight’s US Presidential Debate.

Tomorrow will see the publication of Canada’s July growth rate report, this week’s biggest data for CAD investors. The Canadian Dollar will also be influenced by how much the US Presidential Debate influences market risk-sentiment.
As of Tuesday, 29th September 2020, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.0953, GBP USD exchange rate was 1.2864, GBP AUD exchange rate was 1.8014, GBP NZD exchange rate was 1.9504, and GBP CAD exchange rate was 1.7218.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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