Dollar Falls on Signs Biden Leading in Key Battleground States By Investing.com



By Yasin Ebrahim

Investing.com – The dollar slump Tuesday as Wall Street warned investors that a victory for former vice president Joe Biden could hurt the greenback, with the latest surveys suggesting that President Donald Trump is lagging behind Joe Biden in key battleground states.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.64% to 93.5.

Former Vice President Biden holds a lead over Trump across key swing states including Arizona, Florida, Pennsylvania, and Wisconsin, according to the New York Times/Siena College poll.

“Should Biden manage to secure one of those three states (especially Florida or North Carolina) then the chances for Donald Trump would fall dramatically,” ING said in a note. “In other words, while there is a high risk of a delay in the result, there is also a material chance that Joe Biden may have virtually secured a win by 03:00 EST (08:00 GMT) if results show he’s clearly ahead in those states.”

A Biden victory could spell bad news for the dollar as the former vice president is unlikely to continue with Trump’s trade war against China and the EU, boosting “American imports from overseas and thus add to the global supply of dollars,” Paul Craig of Quilter Investors, the asset manager, said, according to the Telegraph.

Goldman Sachs (NYSE:), however, suggests that the dollar is set to fall regardless of who emerges victorious as negative real interest rates in the U.S. and a sharp global economic recovery from the Covid-19 recession represent “standard recipe for broad dollar weakness.”

“We are currently forecasting about a 15% depreciation in the real trade-weighted dollar from this year’s peak to the end of 2023, but a larger move is certainly possible,” it added.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

error: Content is protected !!

New Report

Close