Forex Today: Dollar declines on hopes for a US fiscal deal, ahead of presidential debate


Here is what you need to know on Tuesday, September 29:

Stock markets remain cautiously optimistic and the dollar is on the back foot, extending the reversal from last week's moves. Investors are eyeing a slew of Federal Reserve speeches, fresh hopes related to Brexit, and the first presidential debate.

The dollar is edging lower in a risk-on mood. Talks between Republicans and Democrats continue in Washington, with House Speaker Nancy Pelosi offering a new deal worth $2.2 trillion. The fresh hopes replace the narrative that the focus on nominating a new Supreme Court Justice would divert energy from further relief.

Gold has been consolidating around $1,880, looking for a new direction. 

Investors – especially pound bulls – are also content with reports of some progress in Brexit trade talks. The EU is reportedly ready to work on a legal agreement. 

Reported coronavirus deaths have hit the grim milestone of one million, with cases increasing quickly in Europe and resuming their rises in the US.

Christine Lagarde, President of the European Central Bank, expressed concerns about the impact of the virus on the economy. Preliminary German and Spanish inflation figures for September are due out on Tuesday. 

The economic calendar features a long list of Federal Reserve speakers, with Vice-Chair Richard Clarida standing out. The Fed encouraged the government to provide more fiscal relief and does not plan to increase QE at this point. 

The Conference Board's Confidence Confidence gauge for September is set to extend its recovery.

See US Conference Board Consumer Confidence September Preview:  Neither happy nor sad

President Donald Trump and Democrat rival Joe Biden are scheduled to clash in the first presidential debate late in the day. The incumbent is the underdog in the polls but the challenger is considered a worse debater. The narrative emerging from the event may move markets. Investors are concerned about the specter of an inconclusive election.

See 2020 Elections: How stocks, gold, dollar could move in four scenarios, nightmare one included

Oil prices have been stable with WTI trading around the $40 mark. 

Cryptocurrencies are edging lower in well-known ranges. Bitcoin is changing hands at around $10,700.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD reflects market tension around 1.0870 ahead of German GDP, Fed vs. ECB battle

EUR/USD reflects market tension around 1.0870 ahead of German GDP, Fed vs. ECB battle

EUR/USD treads water around 1.0870-60 as markets remain on a dicey floor ahead of the key central bank meetings and data. Adding strength to the market’s indecision could be the return of China and fears of a softer growth number from Germany.

EUR/USD News

GBP/USD prints day’s high above 1.2400 as USD Index turns volatile, Fed-BoE policy hogs limelight

GBP/USD prints day’s high above 1.2400 as USD Index turns volatile, Fed-BoE policy hogs limelight

The GBP/USD pair has refreshed its day’s high at 1.2405 in the early European session. The Cable has picked up strength as the US Dollar Index (DXY) has turned extremely volatile amid chatters over the interest rate decision by the Federal Reserve (Fed) and the Bank of England (BoE) this week.

GBP/USD News

Gold shows resilience below 200-hour SMA, bulls have the upper hand

Gold shows resilience below 200-hour SMA, bulls have the upper hand

Gold price kicks off the new week on a subdued note and oscillates in a narrow trading band through the Asian session. The XAU/USD, meanwhile, remains well within the striking distance of a nine-month peak touched last Thursday as investors move to the sidelines ahead of the Federal Reserve’s (Fed) rate-hike verdict later this week.

Gold News

Why Ethereum bears need to be cautious about shorting ETH before $2,000

Why Ethereum bears need to be cautious about shorting ETH before $2,000

Ethereum price has been consolidating after the January rally subsided after three weeks. This tightening continues even after BTC shot up 3% over the weekend. Therefore, a short-term spike in buying pressure should is likely. This move could propel ETH to tag immediate hurdles, liquidating early bears.

Read more

Big risk this week Fed hikes 50 points

Big risk this week Fed hikes 50 points

While the entire global investment community is apparently very excited about the US Federal Reserve slowing its rate increases to 25 point increments, there are strong reasons for arguing why another 50 point rate hike, or two, are still on the Fed menu.

Read more

Forex MAJORS

Cryptocurrencies

Signatures