Joe Biden officially withdrew from the presidential race yesterday, he also endorsed Kamala Harris to face Trump in November, and now the Democrats still have the opportunity to challenge her at the Democratic National Committee next month. But it will be very difficult, especially after Biden's endorsement.
On the other hand, China announced more easing measures today to try to boost economic activity, after the people's Bank of China cut interest rates by 10 basis points, as they took quick measures to try to boost market confidence.
This has increased the pressure on the Chinese yuan, and the US dollar/Chinese yuan has risen to levels of 4.27, as Beijing manages the devaluation of the yuan gradually and more smoothly.
With the weakening of the yuan, most currencies also fell against the US dollar, especially the Australian dollar and the New Zealand dollar during today's trading, and 10-year bond yields in the United States fell by 1.6 basis points to 4.223%.
As the dollar remains steady, there is no big reaction to Biden's withdrawal as Trump remains the frontrunner to win the November elections.
On the technical side, we expect that the dollar is closer to rising, especially if the neckline of the head and shoulders pattern shown in the chart breaks through, and any decline near the levels of retesting the downward price channel and completing the right shoulder of the pattern will be a good buying opportunity for the dollar against most currencies.
