Dollar falls ahead of US midterms as oil plummets
SPY•The dollar index fell 0.22% to 101.76 as oil prices tumbled about 7% and Treasury yields retreated ahead of US midterm elections and a week of economic data and central bank decisions.
1. Dollar and oil retreat
The dollar eased on Monday as oil prices plunged and Treasury yields retreated ahead of US midterm elections, labor-market data and several central bank rate decisions. Crude prices fell about 7% as talks between Iranian and Qatari officials on ending the US-Israeli war with Iran lifted hopes of reduced supply disruptions in the Middle East. The dollar index fell 0.22% to 101.76, after reaching 101.42, its lowest since September 30.
2. Data and market drivers
The Institute for Supply Management’s manufacturing Purchasing Managers’ Index rose to 55.5 in October from 54.5 in September, while input prices remained elevated. The October payrolls report is due Friday. US equities initially got support from lower oil prices, while technology stocks weakened; Apple dipped about 2% ahead of quarterly earnings and Oracle fell more than 8% after plans to raise $20 billion through bond and share sales.
3. Currencies and crypto
The euro rose 0.3% to $1.1192. Bitcoin fell 1.5% to $76,645.42 and ether declined 1.14% to $2,236.50, remaining near lows reached last week after a $6.3 billion heist at Binance. Binance said customers had withdrawn almost $5 billion since the exchange reopened after the hack.
