Unfortunately, the debate between US President Donald Trump and his main rival, Joe Biden, is not as investors expected it to have a big impact on the market.
However, the greenback dollar continued to gain momentum against most other major currencies by trading around the price of 94.00 in the European session.
The increase was driven by a decline in the stock market following continued concerns over election results in November, after polls showed a more favorable victory for Joe Biden.
This is because according to analysts, Trump's victory is seen as better for the stock market as a whole than Biden.
Meanwhile, the pound sterling traded under pressure as Brexit trade negotiations entered its second day. Any developments regarding these negotiations are crucial to the pound movement today.
The euro, on the other hand, was depreciated following the resurgence of the USD and the statement by European Central Bank (ECB) President Christine Lagarde stating that the central bank needed to study strategies to enable inflation to exceed current targets.
As the ECB struggles to achieve its targets, the recession caused by Covid-19 has brought major challenges to the central bank. Europe's largest economy, consumer price index (CPI), Germany reported a significant drop in more than 5 years.
Lagarde admits that the value of the euro will decline in the coming months, but it will rise again in early 2021. This may not be enough for a handful of policymakers who are beginning to prepare for more monetary stimulus.
