US midterm election uncertainty weighs on dollar outlook, Currencies Direct says
SPY•Currencies Direct said US midterm election uncertainty could weaken the dollar and increase volatility, while sterling, the euro and the Canadian dollar face separate pressures.
1. Currency outlook
Currencies Direct said US midterm election uncertainty could weaken the dollar and increase volatility in coming days, despite support from risk aversion. Sterling reached its strongest levels since mid-September as UK government borrowing costs fell after Wednesday’s budget, though caution ahead of Thursday’s Bank of England rate decision may temper sentiment. The euro faces pressure from sharply weaker German retail sales in September despite resilient third-quarter eurozone growth. Canada’s dollar risks further losses if oil prices continue retreating, reversing support from Friday’s roughly 2.5% crude rally.
