Presidential debate knocks the US dollar
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Daily Currency Update
Overnight, Donald Trump and Kamala Harris faced off in the only scheduled televised debate of the 2024 US presidential race. Democratic nominee Kamala Harris was generally seen as having outperformed Republican candidate Donald Trump. The debate covered a wide range of topics, from policy differences to personal attacks, with both candidates engaging in heated exchanges.Following the debate, market odds shifted, with Trump's chances of winning the 2024 election narrowing to even. The event also triggered volatility in the financial markets, with the US dollar weakening while the safe-haven Japanese yen (JPY) saw the largest gains, driving the USD/JPY pair down to 140.80, a level last seen in December 2023. The yen was further supported by comments from Bank of Japan board member Nakagawa, who indicated that additional interest rate hikes are likely. Meanwhile, GBP/USD and EUR/USD saw modest gains, though both remained within recent ranges.
Key Movers
This morning's UK GDP data for July 2024 fell short of expectations, showing no growth for the second consecutive month, following a flat reading in June. Analysts had anticipated a 0.2% increase for July, but the disappointing figures had little impact on the Pound. Market attention quickly shifted to the aftermath of the US presidential debate and the upcoming US CPI release, which is due tomorrow. As of this morning, GBP/USD opened at 1.3080, while GBP/EUR hovered just below 1.1850.Expected Ranges
- GBP/USD: 1.3040 - 1.3120 ▼
- GBP/EUR: 1.1830 - 1.1880 ▼
- GBP/AUD: 1.9540 - 1.9690 ▼
- EUR/USD: 1.1010 - 1.1090 ▲