Dollar Slips; Markets In Wait-And-See Mode Before U.S. Debate

• The dollar index slipped from the recent two-month highs on Tuesday, as markets wait for the first debate between the U.S. presidential candidates, signs of progress in U.S. fiscal stimulus talks, and economic data including German inflation.
• After racking up its biggest weekly gains since early April last week as markets turned cautious and sought safer assets, the dollar gave up some gains on Monday and edged down further on Tuesday, ahead of the debate between President Donald Trump and Democratic challenger Joe Biden.
• ING strategists told clients in a note that a rise in Trump’s perceived chances was likely to boost the dollar, “although the non-negligible risk of a contested outcome (along with the ultra-dovish Fed) may keep the dollar’s upside somewhat capped in the run-in to the vote”.

(Source: Reuters)