Politics dominated currency markets on Thursday as U.S. election worries kept the dollar weak against the yen while sterling rose more than 1% after a UK court ruled parliament would have to approve the start of Brexit talks.
European shares were poised to fall for a seventh straight session while the dollar edged lower with investors largely holding back as the contentious U.S. presidential campaign entered its final week.
We are now exactly one week away from the U.S. election taking place and while this event shouldn’t usually dominate market attention, the fact that the race for U.S. President is between the two most unpopular candidates in election history could provoke a different type of market reaction from investors.
Investors in Asia bought the Japanese yen, sold South Korean stocks and stayed away from volatile assets on Monday, reacting to opinion polls showing Democratic candidate Hillary Clinton's lead over her Republican rival Donald Trump narrowing further in the U.S. presidential election.
The euro was trading just above a three-month low against the dollar on Thursday, with the focus on whether European Central Bank President Mario Draghi will indicate that the bank is poised to taper its bond purchase program.
Stock markets inched higher but the Mexican peso was mixed after the third and final U.S. presidential debate, which was judged to have given no clear boost to Donald Trump's hopes of winning the White House.
The world economy needs international trade to pick up, according to Reuters polls of hundreds of economists who see no end yet to the aggressive monetary stimulus through which central banks have tried to prop up inflation.
Britain needs to sort out its relationship with the European Union before it can begin to talk to the United States about any post-Brexit trade deal, U.S. Trade Representative Michael Froman said in Geneva on Monday.