USD/JPY pair moved lower on monday

The USD/JPY pair moved lower on Monday and hit daily lows around the 105.25 regions at the beginning of the European session. Still, it lacked a substantial track and has quickly recovered a few pips. 

A modest USD pullback is considered a critical factor that was putting pressure on the pair. The USD/JPY was unable to capitalize on its initial rally to the 105.70 region. It broke five consecutive days of winning streak. 

Investors remain worried that the US’s current economic recovery may stumble since there are no new fiscal stimulus measures. On the other hand, there is political uncertainty about the November presidential election. These factors led to some profit-taking and put pressure on the pair. 

Risk appetite sentiment weighed on the safe-haven JPY and could help limit losses. Analysts think it will be feasible to wait for a solid sales continuation.

Presidential debates will begin today

Market risk sentiment and the dollar price dynamics will have a significant influence on the pair. Even though there has not been important economic releases in the US, all the market’s attention will be on the first presidential debate between Donald Trump and Joe Bidden. They will go head-to-head in three debates, which will begin today. The meeting will start at 9 pm ET or 1 am GMT. These televised discussions are likely to be the only times when the candidates appear alongside each other. 

It could instill some volatility in the currency market.

The debate will be 90 minutes long without advert breaks. It will be split into 15-minute segments that focus on six different topics.

The second debate will begin on October 15 at 9 pm ET and will also last 90 minutes. The final presidential debate will be on October 22 at 9 pm ET.