US Dollar Prepares for a Volatile Week as Presidential Election Polls Show Support for Harris
- The US Dollar is weakening as polls indicate Vice President Kamala Harris has taken the lead in the upcoming presidential election.
- Traders are bracing for a volatile week, driven by the Federal Reserve meeting and election developments.
- The US Dollar Index has fallen below 104.00 and is seeking support.
The US Dollar Index (DXY) is expected to experience significant volatility this week, necessitating caution for traders dealing with the US Dollar. Anticipate substantial fluctuations primarily driven by headlines, along with potentially ambiguous direction and swift movements in the days following the election.
The US Dollar (USD) weakened across the board on Monday as a recent poll by ABC News and Ipsos revealed Vice President Kamala Harris leading with 49% compared to 46% for former President Donald Trump. Additionally, data from The New York Times indicates that Harris is ahead in five of the seven key swing states crucial for the presidential election outcome, further contributing to the Dollar’s decline.
On the US economic calendar, an important event to watch this Monday is the release of the Senior Loan Officer Opinion Survey (SLOOS) for the third quarter. This report will provide insights into the conditions, supply, and demand for loans extended to customers in the US. Monitoring loan distribution is a valuable leading indicator for predicting how the economy may develop in the upcoming weeks and months.
The US 10-year benchmark yield is currently at 4.29%, a decline from Friday’s closing rate of 4.38%.