Dollar clings to gains as traders wait for China growth data

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The dollar clung to gains on Monday, supported by investor worries about the looming U.S. election and the fading prospects of any fiscal stimulus beforehand, while the Chinese yuan held firm ahead of the release of quarterly growth data.

FILE PHOTO: A woman counts U.S. dollar bills at her home in Buenos Aires, Argentina August 28, 2018. REUTERS/Marcos Brindicci/File Photo

But enthusiasm was tempered by the opposition of Senate Republicans and as investors focused on what the election outcome means for stimulus later, with a Joe Biden victory seen weakening the dollar by boosting sentiment with big spending. “But forget the Republicans’ move to pass a $500 billion bill, it will not see the light of day, and expectations of a new stimulus bill have been pushed into 2021.”

Fifteen days out from election day, Biden leads Trump by about ten points in national polls, and has a narrow lead in several battleground states. The pair are due to face off in a final debate on Thursday.

 

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