EUR/USD rallies on Greenback weakness heading into US presidential election

EUR/USD climbed on Tuesday, netting a half-percent gain and touching a three-week high.

Fiber pushed back above the 200-day EMA, but plenty of technical issues remain.

Looming Fed rate cut to give investors plenty to chew on following US presidential election.

EUR/USD benefited from a broad-market decline in the US Dollar as global markets brace for early polling outcomes from the US presidential election that kicked off on Tuesday. Fiber jumped two-thirds of one percent to claw back above the 1.0900 handle as investors hope for a market-positive outcome as the US election cycle gets set to pick the next US President for the next four years.

Outside of an appearance from European Central Bank (ECB) President Christine Lagarde, EU-based market data remains relatively limited this week. Pan-EU Retail Sales figures are due on Thursday, with this week’s EU leaders’ summit set to wrap up on Friday and a follow-up appearance from ECB President Lagarde slated for Saturday when the market will be closed.

US election odds have both candidates neck-and-neck in a dead-heat race for the Presidency, with former President Donald Trump and current Vice President Kamala Harris polling within 5% of each other, depending on which poll results you reference. Equity investors, tech sector addicts specifically, appear to broadly believe former President Trump to be the preferred stock-friendly candidate, an odd choice considering the Republican candidate has strongly voiced support of a return to the Smoot-Hawley tariff era of US history. Trump has regularly suggested stiff tariffs across the board on all imported goods into the US, an incredibly inflationary economic policy proposal.