The US dollar hovered near a two-month high at the opening of trading earlier in the week as global stock markets are now heading for losses in the first month since March due to concerns over a slow economic recovery rate with a continuing increase in coronavirus cases.
After the rise in US stocks on Friday reduced the demand for the US dollar as a safe-haven, signs of slowing down the economic recovery and political uncertainty however have prompted investors to be cautious and recover the USD.
The dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded stable at 94.59, approaching its two-month high of last week at 94.74.
Investors are now focusing their attention on the first US Presidential debate that will take place on Tuesday as the election date is also approaching in early November.
Ahead of the debate, The New York Times reported that President Donald Trump has only paid a small amount of Federal income tax in recent years after he won the presidential election.
Meanwhile, some investors are now expecting the US Congress to approve a new stimulus package before elections are held. However, there are growing concerns over a slow economic recovery as many stimulus programs have ended, resulting in limited consumer spending.
In addition, the market will also be represented by the release of key data from the United States, including consumer confidence on Tuesday, manufacturing surveys on Thursday, and employment data on Friday.
