The EUR/USD pair is up for the second straight day ahead of the first presidential debate between Donald Trump and Joe Biden. The pair is also reacting to the relatively sentiment data from Europe. It is trading at 1.1700, which is substantially higher than the Friday’s low of 1.1612.
Dollar slides ahead of Joe Biden and Trump debate
The EUR/USD pair is rising in part because of the overall weaker US dollar as traders wait for the first debate between Joe Biden and Trump. The currency has declined by 0.50% against the Swedish krona, 0.25% against the Swiss franc, and 0.30% against the sterling.
In the debate today, the two presidential candidates are expected to explain their plans about the economy and other issues.
The debate comes at a time when congressional Democrats and the White House are deliberating on the next stimulus package. Democrats have proposed spending about $2.5 trillion, a figure that is lower than their previous plan. This figure is a trillion higher than what the White House is advocating. It is also $1.5 trillion higher than what Republicans are willing to spend.
The stimulus debate matters because analysts say it is necessary to support the American economy. Indeed, recent data has shown that the economy started to slow when the enhanced unemployment benefits expired in May.
Eurozone confidence rises as Germany inflation declines
The EUR/USD is also reacting to the relatively strong confidence data from the Eurozone. The data showed that industrial sentiment increased from -12.7 to -11.1. Similarly, sentiment in the services sector rose from -17.2 to -11.1.
Another data showed that consumer confidence remained at -13.9 while
