Traders weighed the implications of a first bitter presidential debate between the ill-mannered candidates for the US presidency, President Trump and his challenger, Joe Biden.
Republican President Donald Trump repeatedly interrupted Democratic rival Joe Biden in the Cleveland debate. The agenda of this first dynamic discussion included Trump’s taxes, the economy, the coronavirus pandemic and election integrity.
The two candidates battled fiercely over Trump’s record on the coronavirus pandemic, healthcare and the economy. The bad-tempered first debate was marked by personal insults and Trump’s repeated interruptions.
Market action following the debate showed some nervousness as uncertainty over the outcome of the U.S. presidential election remains high.
The presidential debate yielded no clear winner. The debate showed the men trading barbs adding to the confusion about how the election will run. Many investors view Biden as more likely to raise taxes, and see a second term for Trump, who favors tax cuts and deregulation. At the same time, a Trump win could spark concerns over ramped up tensions between Washington and Beijing.
Steep rises in COVID-19 cases turned investors cautious too, though strong factory surveys boosted China’s markets. Markets globally either deepened losses or pulled back from highs scaled after data showed China’s economic recovery remains on track.
Traders also watched for progress in talks about further U.S. fiscal stimulus to soften the coronavirus blow.
Economic indicators have recently painted an uneven picture of the economic recovery in Europe. However, Wednesday’s data were generally positive.
START TRADINGForex – Ill-mannered candidates disappoint investors
Many market participants were cautious about linking currency moves to the debate. Hopes for a swift recovery from the COVID-19 economic crash in the Q4 made investors exit safe havens.
The dollar index crept just above the 94 mark after two days of losses following a two-month high last week. Overall, the dollar was set for its worst quarter since the spring of 2017 with a fall of about 3.3%.
The yen rose 0.2% to 105.50 per dollar, its strongest daily rise in nearly two weeks.
The dollar rose 0.28% against the Swiss franc at 0.9218 franc, after falling as low as 0.9191 franc overnight.
The risk-sensitive Australian dollar fell 0.2% to $0.7118, heading for its worst month since March.
The euro was down 0.3% against the dollar at $1.1706.
The pound fell after Britain’s lower house of parliament approved legislation that gives ministers the power to break its Brexit divorce agreement. Sterling’s decline was small; the bill’s passage was expected, and market participants have increased their expectations of a Brexit deal.
The British pound was last trading down 0.3% versus the greenback at $1.2817, after reaching earlier its lowest since Monday. Versus the common currency, sterling fell 0.2% at 91.55 pence.
Elsewhere, oil prices fell amid rising concerns about fuel demand as the coronavirus pandemic worsens.
Brent crude futures were last down 0.9% at $40.66 a barrel and U.S. crude futures were down 0.7% at $39.00 a barrel.
Gold slipped 0.4% to 1,890 an ounce.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money