US dollar bounces around as the election cloud looms

Today was a busy day of economic data that featured a strong ADP jobs report and a softer-than-expected GDP report that contained some very strong details. We also got a blockbuster pending home sales report.

Normally that combination would lead to some US dollar strength but that hasn’t been the case today. Instead, we’re seeing a backup in the dollar against the euro and a mixed picture elsewhere. Part of that was a hotter German CPI report and decent European growth data but the moves also reflect a market that’s hesitant to trade on economic data.

I mean, what’s the rush to buy on a GDP, inflation or jobs report when Tuesday’s election could upend the economy’s trajectory. Certainly, the market has been leaning towards Trump but given the series of US election surprises this century, I’d hardly imagine that real money is wading in.

So we wait and take these moves in stride as the ebb and flow of markets.

This article was written by Adam Button at www.forexlive.com.