US Dollar Set to Post Weekly Loss – Biden’s Possible Victory Weighs
The US dollar looks all set to end this week on a bearish note, posting the largest weekly decline against the yen and dropping around a cent against the euro amid rising hopes for Biden to win the upcoming elections. At the time of writing, the US dollar index DXY is trading around 93.04.
The dollar is trading cautiously upbeat early on Friday as traders look forward to the next presidential debate between Trump and Biden. With the elections only a few days away, the greenback could see volatile trading in case of any severe changes in polling numbers for either side.
So far this week, the US dollar has lost around 0.8% of its value in anticipation of the upcoming coronavirus relief package. Throughout the week, markets received encouraging statements about progress being made, but both sides signaled that the bill could be passed only after the November 3 elections.
A victory for Biden raises expectations for a larger stimulus package than the one currently under discussion. A bigger stimulus package could weaken the dollar even more, while boosting the risk sentiment and sending traders towards riskier currencies.
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