Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar in narrow range ahead of U.S. election, pound weakens

Coronavirus Nov 02, 2020 12:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: U.S. dollars and other world currencies lie in a charity receptacle at Pearson international airport in Toronto

By Eimi Yamamitsu

TOKYO (Reuters) - The U.S. dollar steadied on Monday as investors prepared for U.S. presidential elections on Tuesday, while a surge in global coronavirus cases continued to weigh on sentiment.

The greenback held onto gains after posting its largest weekly percentage rise since late September in the previous trading session.

The pound inched lower on cornavirus worries, after British Prime Minister Boris Johnson announced over the weekend a one-month lockdown across England.

Investors are sticking to the U.S. currency, which is often considered to be safe, as Tuesday's presidential election keeps financial markets on edge.

Democratic challenger Joe Biden leads in national opinion polls though the race is seen as close in enough battleground states that President Donald Trump could achieve the 270 votes needed to win in the state-by-state Electoral College that determines the overall victor.

"Currency volatility can extend well beyond Election Day because there is a high risk the losing candidate will dispute the election results. The 2000 election took around one month to resolve the disputes," analysts at Commonwealth Bank of Australia (OTC:CMWAY) said in a client note.

The dollar index, which tracks the greenback against a basket of major currencies, last sat at 94.17 (=USD), near its one-month high of 94.195.

Meanwhile, the novel coronavirus continues to ravage already-battered economies.

England's lockdown aimed to last until Dec. 2 could be extended as Britain struggles to contain a second wave of COVID-19, a senior cabinet member said on Sunday. The United Kingdom is grappling with more than 20,000 new coronavirus cases a day.

Against the dollar, the pound was last down 0.39% to $1.2904 , with traders also eyeing updates on Brexit trade talks. EU and British Brexit negotiators will continue talks in Brussels on Monday until around mid-week, people on both sides told Reuters.

In Europe, new COVID-19 cases have doubled in five weeks, a Reuters tally showed, with total infections surpassing 10 million.

The euro steadied in Asian trade but was close to hitting long-term lows against the greenback and Japanese yen.

It last fetched $1.1638 (EUR=EBS), extending losses after a near one-month low of $1.1640 against the U.S. dollar seen last week, while against the yen, the common currency changed hands at 121.83 (EURJPY=).

"The euro has been selling since infection cases and lockdowns stood out in Europe," said Daisuke Uno, chief strategist at Sumitomo Mitsui (NYSE:SMFG) Bank.

"But infection cases in other countries, like the U.S., have been on a rise as well. As time goes on, I think increasing coronavirus cases and lockdowns will be common topics in any country, to the extent that they are no longer themes for the currency market," he said.

Indeed, the United States posted nearly 87,000 cases on Saturday and record hospitalisations in Midwestern states.

The risk-sensitive Australian dollar also took a hit from global coronavirus concerns, last trading at $0.6999 after slipping to its lowest since July at $0.6997.

The greenback was little changed against the yen at 104.72 yen , away from a five-week trough of 104.02 hit on Thursday.

"Dollar/yen will likely remain quiet for today and tomorrow, due to the election," Daiwa Securities chief FX strategist Mitsuo Imaizumi said, but added any dispute over vote count could lead to volatility.

Chinese yuan last sat at 6.6883 per dollar , as China's factory activity data, both private and official, were above analysts' expectations.

Besides the U.S. presidential election, this week is filled with economic data, including PMI data from the United States, euro zone and elsewhere, as well as U.S. non-farm payrolls and Chinese trade.

Three central banks are also due to announce policy decisions this week. The Reserve Bank of Australia meets on Tuesday, while the Bank of England and U.S. Federal Reserve deliver their decisions on Thursday.

Dollar in narrow range ahead of U.S. election, pound weakens

Related Articles

Dollar Edges Higher; Sterling Weak After GDP Fall
Dollar Edges Higher; Sterling Weak After GDP Fall By - Aug 12, 2022 3

By Peter Nurse - The U.S. dollar edged higher in early European trade Friday, rebounding to a degree after a two-day selloff as weaker than expected inflation data...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email