US Dollar Index surges after 4-day decline ahead of elections

The US dollar started the week rising against European currencies and also versus the yen as latest polls show Hillary Clinton ahead of Donald Trump. 

Greenback opened the week higher after the FBI said that new emails won’t lead to charges against the Democratic Candidate. It rose further against European currencies and the yen, that boosted the US Dollar Index. Versus commodity and emerging market currencies, Greenback dropped or remain flat. The best performer on Monday was the Mexican peso. 

The DXY is about to have the highest gains in two weeks. On Friday it closed below 97.00 and today peaked at 97.83, the strongest level in six days. Near the end of the session, it was holding near the highs, with a bullish tone. 

The FBI story and the latest polls triggered a rally in US stocks that did not weaken the US dollar. A Clinton victory is likely to increase the odds of a Federal Reserve rate hike in December.  Tomorrow is election day in the US and if early exit polls show some surprise in favor of the Republican candidate, then volatility across financial market could start rising sharply.  

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