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Dollar Exhibits Mixed Trend Against Peers

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Dollar Exhibits Mixed Trend Against Peers

The U.S. dollar turned in a mixed performance against its peers on Wednesday.

News about a surge in coronavirus cases across the globe, the presidential debate that took place Tuesday night and economic data from the U.S. and U.K. were the key factors that set the trend for the currency’s movements.

After two successive days of weakness, the dollar gained in the Asian session today, as the US Presidential election debate failed to impress investors and increased uncertainty about an inconclusive election.

President Donald Trump and Democratic rival Joe Biden clashed over Trump’s handling of the coronavirus pandemic, the economy and the integrity of the upcoming election in the first presidential debate held at Case Western Reserve University in Cleveland.

Comments from Trump suggesting a delay in the election results and uncertainty ahead weighed on the markets.

However, the greenback failed to hold gains and slipped as session progressed, and then stayed sluggish for almost the rest of the session.

A report released by payroll processor ADP said private sector employment in the U.S. surged up by more than expected in the month of September, increasing by 749,000 jobs, after jumping by an upwardly revised 481,000 jobs in August.

Economists had expected employment to increase by 650,000 jobs compared to the addition of 428,000 jobs originally reported for the previous month.

According to a report from the National Association of Realtors, pending home sales in the U.S. jumped to a record high in the month of August. The NAR report said its pending home sales index spiked by 8.8% to 132.8 in August after surging up by 5.9% to 122.1 in July. Economists had expected pending home sales to increase by 3.2%.

The dollar index rose to 94.19 by mid morning but fell to 93.67 a little before noon before recovering to 93.84, slightly below its previous close of 93.89.

Against the Euro, the dollar fell to $1.757 but regained some lost ground as the day progressed and was last seen at $1.1728, compared to $1.1744 Tuesday afternoon.

The Pound Sterling firmed up, fetching $1.2922 per sterling, rallying from $1.2858. The U.K. economy contracted at a record pace in the second quarter though the decline was less severe than previously estimated, revised data from the Office for National Statistics showed.

The Yen was firmer at 105.45 a dollar, compared to 105.67 a dollar on Tuesday.

The dollar was weak against the Aussie with the AUD-USD pair at 0.7164, nearly 0.5% lower than previous close.

The Swiss franc was weak at CHF0.9211, falling from CHF0.9197. The the Loonie was stronger at C$1.3320, firming up from C$1.3388 a dollar, thanks to higher crude oil prices.

The material has been provided by InstaForex Company – www.instaforex.com