Concerns Over Upside Potential for the U.S. Dollar, Which Has Become the Dominant Force in the U.S. Presidential Election

Concerns Over Upside Potential for the U.S. Dollar, Which Has Become the Dominant Force in the U.S. Presidential Election

06.11.2024

The U.S. dollar was the weakest currency the previous day, based on U.S. time.The EUR/USD pair rose from 1.0871 to 1.0935, with prices moving along the +2σ line of the hourly Bollinger Bands. However, during today’s Asian trading session, the U.S. dollar has strengthened following preliminary results from the U.S. presidential election, causing the EUR/USD pair to plummet to 1.0702.

European currencies saw the Swiss franc rise against the yen following yesterday’s release of Switzerland’s October employment statistics, which showed that the seasonally adjusted unemployment rate remained unchanged from the previous month’s 2.6%. The CHF/JPY pair rose from 169.340 to 177.250, rebounding from below the 20-period moving average on the hourly chart.Since the pair rebounded upon touching the 20-day moving average on the daily chart, we should keep an eye on whether the Swiss franc’s upward trend continues.

Today, the minutes of the Bank of Japan (BOJ) meeting will be released at 8:50; German manufacturing orders at 16:00; the French non-manufacturing PMI at 17:50; the German non-manufacturing PMI at 17:55; the Eurozone non-manufacturing PMI at 18:00; and the UKConstruction PMI, at 19:00 the Eurozone Producer Price Index, at 21:00 the U.S. MBA Mortgage Applications Index, at 23:00 remarks by ECB President Lagarde, at 24:00 the Canadian Ivey Purchasing Managers’ Index, at 24:30 U.S. weekly crude oil inventories,and at 27:00, the U.S. 30-year Treasury auction. We should remain highly vigilant regarding the upside potential of the U.S. dollar, which has emerged as the dominant force amid the U.S. presidential election.