06.10.202014:29 Forex Analysis & Reviews: Dollar falls due to rising risk sentiment

The US dollar fell on Tuesday in early European trading after President Donald Trump was discharged from hospital, prompting traders to abandon safe haven currencies.At 02:55 am ET (06:55 GMT), the US dollar index, which tracks it against a basket of six other currencies, fell 0.1% to hit 93.500, while EUR/USD was up 0.1% to 1.1783. Meanwhile, USD/JPY lost 0.1% to trade at 105.69.Donald Trump returned to the White House after three days of hospital treatment. It should be noted that the market perceives this as a reduction of political risks associated with elections.House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held telephone talks on Monday over a new stimulus package. The discussion will continue on Tuesday. The imminent resolution of the issue of financial assistance could also affect the market sentiment.However, there has been little progress, with markets awaiting comments from SA Federal Reserve Chairman Jerome Powell and other central bank's officials at the meeting of the National Association for Business Economics on Tuesday.The US dollar is likely to be volatile ahead of the presidential election, currency strategists said.The dollar rose by more than 2% in September, its best monthly indicator this year, but in 2020 it is still more than 3% lower.GBP/USD climbed 0.1% to 1.2990 as Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed to intensify Brexit talks over the weekend to address any issues holding back progress.Britain intends to leave the EU even without an agreement when the transition period ends at the end of the year.The Reserve Bank of Australia left rates unchanged, and, as a result, AUD/USD fell 0.3% to 0.7157. The regulator seems to be laying the groundwork for further easing of its monetary policy.