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US Dollar Hits Its Lowest in 3 Weeks Less Than a Week Before Election

November 2, 2016 at 18:52 by Yahia Barakah

US dollar banknotes and coinsThe US dollar fell on Wednesday against most of the major currencies, including the euro, yen, and sterling ahead of the US presidential election that runs on November 8.

The political tension in the USA is reducing traders’ appetite for the nation’s currency as Republican presidential candidate Donald Trump moves closer in polls to Democrat Hillary Clinton after the FBI said last Friday that it’s opening an investigation into more emails related to Hillary Clinton’s private email use when she held the position of the secretary of state.

The Federal Reserve released a statement at 18:00 GMT following a policy meeting that lasted for two days that ended with a decision to maintain interest rates unchanged. The Federal Open Market Committee stated continued strength in the labor market and stable economic growth as reasons behind its decision. However traders are awaiting the release of the meeting’s minutes to look for hints regarding the timing of the next interest rates hike with future prices showing 68.9% chance of that happening in the FOMC meeting on December 14.

Employment Data released in the USA today had a little effect on the dollar as all eyes remain on the presidential election. The ADP Research Institute published its nonfarm payroll report that showed a positive change by 147,000, which is the smallest increase since May and below forecasts of an increase by 165,000.

EUR/USD touched 1.1094 as of 20:41 GMT after trading at 1.1908 at 19:00 GMT, the pair’s highest level since October 10. EUR/USD was trading near 1.0960 at 05:00 GMT on Tuesday before it started moving higher for most of yesterday and today.

If you have any questions, comments, or opinions regarding the US Dollar, feel free to post them using the commentary form below.

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