- President Trump has warned of a potential delay in the election outcome, sending the risk assets lower.
- EUR/USD drops as the dollar draws bids, as tracking losses in the US stocks futures.
As the bid tone around the US dollar strengthened, pushing EUR/USD down from the session high of 1.1755 to 1.1730 after President Trump said that November 03 election results might not be known for months. Trump said that we might not know for months and this is not going to end well during the first presidential debate.
Trump’s comments bolstered fears of a delay in the election outcome, which the US equity options market has been pricing for some time and triggered risk aversion.
S&P 500 futures fell on 43 points from session highs and the Dow futures cracked by over 300 points, boosting safe-haven demand for the US dollar.
The risk-off mood will be likely to persist in Europe, keeping on the EUR/USD pair under pressure. In which, after all, any post-election uncertainty would be bad for both the US and the global economy.
The Markets may be ignored by the German Retail Sales, Import Price Index, Unemployment Rate, and the European Central Bank President Lagarde’s speech, unless the risk of appetite strengthens.
Overall, risk sentiment strengthened in early Asian markets following the release of better-than-expected China manufacturing data. Such as, things took a turn for the worst following Trump’s comments on the election outcome.