The U.S. Dollar is strengthening with some momentum resulting from a twist to the Presidential race. Hillary Clinton, the Democratic candidate, was once again cleared by the FBI of any criminal wrongdoing as it pertains to investigation over her use of a private e-mail server while she served as Secretary of State. The chances of her victory improved in the eyes of global markets with stock indexes rising for the first time in over a week. Equities rose by 1.5% on average across Asian and European sessions. The greenback’s fortunes correlate in a positive way with the developments.
With all eyes on the election tomorrow, markets remain vulnerable and currency pairs may fluctuate wildly. Peso is already trading at its strongest level in two weeks after recovering by over 2.0% overnight. No data today means headline will help direct fluctuation, likely to stay in the dollar’s favor.
The Pound fell after American political developments and the UK’s own struggles with international relations. Prime Minister Theresa May is on a visit to India having to uncomfortably defend current immigration policies and trade opportunities post-Brexit.
British image around the world has suffered as a result of the referendum’s Leave success. Although good data came in the way of rising housing prices, Sterling remained under pressure until the U.S. campaign comes to a complete end.
The Euro weakened as markets flourished and the dollar reversed most of last week’s losses to the common currency. Although the Euro-zone has enjoyed modest growth recently and stronger-than-expected indicators, German Factory Orders contracted and Retail Sales expanded at a slower pace than forecast. Doubt will surround the euro as we head into a busy end of the year with an Italian referendum looming and possible banking reform measures.