USD tumbles on Clinton's email case, US stocks erase gains
|It was being a weak day for the US dollar and suddenly the decline accelerated after the FBI reopened the Clinton email case, less than two weeks before the presidential elections. The US dollar tumbled in the market and the yen surged amid risk aversion.
The Dow Jones index dropped quickly to 18,095 a 2-day low, before bouncing back to the upside. It was about to end Friday and the week practically unchanged around 18,180. Before the Clinton report, the stock index was up, testing the 18,250 area.
DXY down
The US dollar index was falling, trading slightly above 98.55 and then tumbled to 98.17, hitting the lowest level in a week. It then bounced to the upside, but failed to regain the 98.50 zone.
Near the end of the week it was hovering around 98.30, marginally lower for the week. The recent slide pushed the index into negative territory for the week. It is going to be the first decline after rising 3.75% during the previous three weeks. On Tuesday it reached the highest level since March above 99.00 but it was rejected.
Heavy calendar ahead for the US
Next week, the week before the election, the campaign could get more intense. In the economic front, it will also be a busy week, that includes several employment reports and the FOMC meeting.
Regarding the Federal Reserve, analysts from Danske Bank, expect it to maintain the target range at 0.25-0.50%, in line with consensus, arguing that is near the presidential election. “The most interesting part is the FOMC statement”, but they don’t see any major changes to the FOMC statement, “as it was already quite hawkish last time, as it stated that the case for a rate hike had ‘strengthened’, although it may say that economic data have supported its view that growth has picked up pace.”
On Friday, the official employment report will be released. “We continue to receive mixed signals about the labour market”, said analysts from Danske, that estimate jobs growth of around 170,000 in October.
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.