Despite the headline dominating Presidential debate last night, the US Dollar has continued to go strength to strength just as it did last week. Investors appear to be flocking to the Greenback in these times of political uncertainty, as trust remains high in the currency and it appears that this pattern will not be changing in the short-term future.
ANZ, a major bank that operates predominantly within Australia and New Zealand, has noted that net US dollar long positions increased last week against a basket of major currencies, and this report (from the US Commodity Futures Trading Commission) could provide us with a strong indication of the Greenbacks movement in the near distant future.
Aside from these key indicators last night’s debate will continue to remain a key topic both this week and within upcoming weeks. The election is now just around the corner and these debates are offering the candidates a chance to really impress during a crucial time, and this can affect exchange rates as the two candidates (Donald Trump and Hillary Clinton) have differing opinions regarding monetary policy moving forward.
Economic data out of the UK is thin this week so those hoping to gauge this week’s movement between cable (GBPUSD) will have to look to the news releases stateside.
At 7pm UK time on Wednesday the FOMC Minutes will take place whereby the current monetary policy within the US will be justified and discussed in some detail. Expect any indications of further monetary policy changes to affect exchange rates involving the US Dollar as many as many other major currencies that tie into US monetary policy.
Friday is then likely to be busy as US Retail Sales Figures for the month of September will be released, and then Janet Yellen will give a speech at 5pm UK time which again could create swings within exchange rates.