Dollar Drops As Polling Begins In U.S. Election

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The U.S. dollar fell against its major counterparts in the European session on Tuesday, as investors awaited the outcome of the U.S. Presidential election amid growing hopes of a victory for Democratic nominee Joe Biden.

Polls continue to show Biden leading Trump nationally, but the race remained tight in several battleground states.

NBC News/Wall Street Journal poll showed Biden up 10 percentage points over Trump, 52%-42%.

Investors are betting on a potential ‘Blue Wave’ scenario, which is bearish for the dollar.

The Federal Open Market Committee will start its two-day meeting on Wednesday, with policymakers expected to keep interest rates unchanged.

The greenback weakened to 4-day lows of 104.48 against the yen and 1.1699 against the euro, after rising to 104.80 and 1.1631, respectively in previous deals. If the greenback falls further, it is likely to test support around 100.00 against the yen and 1.18 against the euro.

The greenback pulled back from its early highs of 1.3234 against the loonie, 0.6621 against the kiwi and 0.7028 against the aussie and slipped to an 8-day low of 1.3137, 6-day lows of 0.6684 and 0.7133, respectively. The greenback is seen finding support around 1.29 against the loonie, 0.68 against the kiwi and 0.74 against the aussie.

The greenback reached a 5-day low of 1.2997 against the pound, down from a high of 1.2905 set at 5 pm ET. The greenback may challenge support around the 1.31 mark.

The U.S. currency edged down to 0.9155 versus the franc, reversing from a high of 0.9192 seen at 8 pm ET. On the downside, 0.90 is possibly seen as its next support level.

U.S. factory orders for September will be released in the New York session.

The material has been provided by InstaForex Company – www.instaforex.com

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