EUR/USD sheds 25 pips on risk of delay in US election results
- EUR/USD drops as dollar draws bids, tracking losses in the US stock futures.
- President Trump warns of potential delay in the election outcome, sending risk assets lower.
The bid tone around the US dollar strengthened, pushing EUR/USD down from the session high of 1.1755 to 1.1730 after President Trump said that the Nov. 3 election result might not be known for months.
"We might not know for months," Trump said during the first presidential debate, adding further that "this is not going to end well."
Risk-off
Trump's comments bolstered fears of a delay in the election outcome, which the US equity options market has been pricing for some time and triggered risk aversion.
The S&P 500 futures fell by 43 points from session highs and the Dow futures cracked by over 300 points, boosting the safe-haven demand for the US dollar.
The risk-off mood will likely persist in Europe, keeping the EUR/USD pair under pressure. After all, any post-election uncertainty would be bad for both the US and the global economy.
Markets may ignore the German Retail Sales, Import Price Index, Unemployment Rate, and the European Central Bank President Lagarde's speech, unless the risk appetite strengthens.
The risk sentiment had strengthened in early Asian following the release of better-than-expected China manufacturing data. However, things took a turn for the worst following Trump's comments on the election outcome.
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
