EUR/USD: Lagarde pressures the euro and Trump boost the dollar

EUR/USD is under pressure after ECB President Lagarde expresses concerns about inflation while the safe-haven dollar is on the rise following the chaotic presidential debate, Yohay Elam, an analyst at FXStreet, reports.

Key quotes

“The ECB is worried about weak consumer prices after preliminary German Consumer Price Index figures showed ongoing softness. Will the Frankfurt-based institution add to its stimulus? While the head of the ECB is pushing in that direction, the hawks are ready to fight back. The northern members of the eurozone are wary that the bank loses its independence by financing governments. Nevertheless, Lagarde has the last words and she is lowering the euro.”

“Incumbent Donald Trump and challenger Joe Biden clashed in a chaotic 90-minute battle which left most viewers annoyed. Markets responded in earnest to the president’s refusal to say he would accept the election results. Concerns about a contested election and a constitutional crisis – have risen.” 

“The upcoming vote and the ugly debate lower the chances that Republicans and Democrats get their act together and agree on fiscal stimulus. A weak jobs report could push politicians to strike a deal, and the first hint toward the Non-Farm Payrolls is due out later in the day.”