U.S. President Trump’s probability of getting re-elected gained slightly on online betting markets following Thursday’s final presidential debate.
However, a widening lead in polls by Biden is prompting many investors to bet on a Biden presidency.
The final debate presented few surprises for election watchers but slightly reinforced investor caution heading into the Nov. 3 poll. Biden renewed his criticism of Trump’s handling of the coronavirus pandemic as Trump levelled unfounded corruption accusations at Biden.
With 12 days to go, some 47.5 million Americans have turned in ballots. This is roughly eight times the number of early votes cast at about same point before the 2016 presidential contest.
Trump has declined to say if he will accept the results of the election if he loses. The US President repeated his unfounded complaint that mail-in ballots would lead to election fraud.
In the near-term, investors looked to talks on another round of COVID-19 stimulus. U.S. House of Representatives Speaker Pelosi reported progress in talks with the Trump administration.
In Europe, Euro zone economic activity slipped back into decline this month, surveys showed on Friday. A second wave of the coronavirus sweeps across the continent heightening expectations for a double-dip recession. Renewed restrictions to control the pandemic forced many businesses in the bloc’s dominant service industry to limit operations.
Friday’s surveys showed the bloc’s economy is running at two speeds. Manufacturing benefits from strong global demand. Services struggle to remain active as lockdowns force consumers to stay home and businesses to close.
Britain’s economic recovery has lost more momentum this month. A resurgence of the coronavirus pandemic hit businesses in the hospitality and transport sectors, a survey showed on Friday.
On the Brexit front, Britain and the European Union entered intense negotiations on a trade deal.
START TRADINGForex – Final Presidential debate improves Trump’s re-election chances
Ιnvestors tightened positions with less than two weeks to go before the U.S. presidential election. They also awaited a breakthrough in stimulus talks in Washington.
The dollar bounced back from Wednesday’s seven-week low. But the greenback stayed under pressure as investors began to wager on a Biden presidency and big U.S. stimulus. It headed for weekly losses.
The yen was up 0.1%, changing hands at 104.77 yen per dollar. The Japanese currency ticked up after the final presidential debate merely hardened investors’ caution heading into the election.
The euro traded at $1.1795, down 0.2% but still up 0.7% on the week.
Sterling edged up in London trading on Friday, set for a weekly gain against the dollar and euro. The pound had its best day in seven months on Wednesday, surging 1.7% against the dollar. It was the day when Britain and the EU said they would start the new phase of negotiations.
The pound was at $1.3095, up 0.1% on the day and up around 1.4% on the week. The British currency was at 90.41 pence per euro, having slipped around 0.1% on the day.
Oil prices eased slightly, giving up part of the previous day’s gains. Oil steadied near $42 a barrel on Friday, heading for its first weekly drop in three.
Brent futures dropped 0.6% to $42.19 per barrel while U.S. crude futures shed 0.7% to $40.35 per barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money