Dollar Weakens Amid Tight U.S. Election Race and rate cuts Dollar Weakens Amid Tight U.S. Election Race and Upcoming Fed Decision
The U.S. dollar dropped as the latest polls indicate no clear leader in the presidential race, reducing bets on a Trump victory. Treasury futures rose, reflecting cautious investor sentiment amid the uncertainty.
Citigroup strategists suggest that a Trump victory could see the dollar rally by 3%, while a Harris victory could result in a 2% decline. This highlights the significant impact the election outcome could have on the USD. Meanwhile, the Fed is expected to announce a 25-basis point rate cut, adding to market volatility already heightened by the election.
Traders are keeping a close eye on early results from swing states like Michigan and Pennsylvania for insights into the potential election outcome and its implications for the financial markets.
Source: Information derived from Bloomberg
