FOREX-Dollar ticks up after Trump/Biden debate

* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E

By Julien Ponthus
LONDON, Sept 30 (Reuters) - The dollar ticked up in Europe
on Wednesday, recovering some losses after a two-day fall, as
traders assessed a debate between President Donald Trump and his
challenger, Joe Biden.
The dollar index against a basket of currencies crept above
the 94 mark =USD , after two days of losses that followed the
dollar reaching a two-month high last week.
"I don't think that the USD recovery is related to the TV
debate, which has, if anything, increased US political risks and
should weigh on the USD", said Thu Lan Nguyen, a foreign
exchange strategist at Commerzbank.
"Instead, we are seeing a natural pullback after the sharp
depreciation in the last two days, which I think is natural",
she said.
U.S. stocks futures and European stocks traded lower hours
after the debate, marked by Trump's repeated interruptions in a
chaotic encounter in which the candidates battled over the
president's leadership on the coronavirus pandemic, the economy
and taxes. "I thought Biden did pretty well and so it's no surprise to
now see U.S. share market futures down as investors have gone
back to worrying about a contested election, a delay in the
outcome and whether Trump will go peacefully if he loses", said
Shane Oliver, head of investment strategy at AMP Capital.
Traders also focussed on a U.S. fiscal stimulus packaged to
cushion the coronavirus blow.
The euro EUR=EBS lost 0.18% against the dollar at $1.1722.
Economic indicators have recently painted an uneven picture of
the economic recovery in Europe, but the morning data were
generally positive.
German retail sales rose more than expected in August,
raising hopes that household spending will power a recovery in
the third quarter from the coronavirus shock. The dollar rose 0.28% against the Swiss franc at 0.9218
franc, after falling as low as 0.9191 franc overnight CHF=EBS .
Switzerland's KOF leading indicator hit a 10-year high in
September, rising for the fourth time in a row as the economy
extended its recovery from the coronavirus. China's yuan held steady even after twin surveys showed
strong factory activity growth, which backed recent signs of a
rebound in broad sectors of the world's second-biggest economy.
The offshore yuan steadied at 6.8141 per dollar CNH=EBS .
Against the yen, the dollar was steady at 105.56 yen JPY= ,
below a two-week high of 105.74 overnight.