The US dollar has had a good October so far, gaining ground against risk and safe currencies alike. It has never been a one-way street, but the dollar’s strength is quite dominant. However, the team at Credit Agricole sees downside potential ahead of the November 8 vote:

Here is their view, courtesy of eFXnews:

The USD pullback suggests the rally may be running out of steam in the absence of significant data support.

With November FOMC meeting and Presidential election approaching, we would not be surprised to see the dollar settling into the more neutral pattern in the coming days.

This is particularly the case since historically the greenback tends to weaken around 1-2 weeks ahead of the Presidential vote.