On Monday morning in Asia, the dollar was down with a lack of big moves ahead of the U.S. presidential debates on Tuesday and the release of U.S. economic data later in the week.
The U.S. dollar was boosted by the rebound in U.S. stocks on Friday’s sessions which led near to its two-month peak.
However, signs of U.S. economic recovery are slowed down due to political uncertainty which capped its gains.
The U.S. Dollar Index inched down 0.04% to 94.588 by 10 PM ET (2AM GMT).
Investors will be looking to the first presidential debate schedule for Thursday and will base their positions and confidence depending on the outcome of the debate.
“Few people will be trying to bet on the election outcome. At least they will wait until tomorrow’s TV debate,” Societe Generale director of FOREX Kyosuke Suzuki told Reuters.
Hopes for latest stimulus to be passed by the U.S. congress before the election are dimming. However, House Speaker Nancy Pelosi, expressed hope on Sunday that a deal can be struck as talks continue between Democrats and Republicans.
Some of the U.S. data’s that the investors are looking out for this week are CB Consumer Confidence index on Tuesday and the Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) on Thursday which are expected to show a slowdown in the recovery as many of the stimulus measures have expired, cutting consumer spending.
In the daily charts of GBP/USD, the pair opened at 1.2741 Monday morning in Asia trading session.
The sterling has seen gains since early morning on Monday and the bullish candle seems healthy enough to thread higher. With the ongoing Brexit woes almost coming to an end, Mick Mulvaney says that UK and EU might reach a deal which further boosted the pair.
The pair has touched the price support level several times at 1.27129 which signaled false breakouts and the price kept retracing from this level for the third time. Now the price is above the support level and we may see further gains if there are positive news regarding Brexit and the lockdown measures to contain the spreading of the virus in the Euro zone.
The GBP/USD pair inched up 0.20% to 1.2765
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