Donald Trump is set to appoint a new Chief Justice before the November presidential election because according to him, the Supreme Court will resolve in case there are disputes over who won the race.
However, there are talks that Trump only wants to do this because he plans to expand the powers of the new Chief Justice. By placing his own man in the seat, Trump can push his preferences, especially in the upcoming election, that is, bringing the voting to a Supreme Court trial. But since the Democrats are not pushovers, it is highly unlikely that such a scenario will happen.
In any case, although this news does not really have a serious impact on the US dollar, such steps will be incorporated into the dollar rate as the official date of elections approaches.
Meanwhile, with regards to macroeconomic reports in the United States, the latest data on PMIs came out good as expected. Although business activity in the private sector remained almost unchanged this September, it is still very encouraging, especially since there was a noticeable decrease in the indicators of European countries.
According to IHS Markit, the preliminary composite PMI fell back to 54.4 points in September, a little below the statistics last August. However, index values above 50 still indicate growth in activity.
As for the preliminary PMI for the services sector, the index came out at 54.8 points, better than the expected 54.6 points. Meanwhile, the PMI for the manufacturing sector rose to 53.5 points, but the value is a bit below than the forecasted 53.8 points.
Thus, the EUR/USD pair remains in full control of the bears, with which a breakout from the support level of 1.1645 will lead to a larger drop towards 1.1585. The quote may also tend to values 1.1540, 1.1425 or 1.1370 in the medium term, but most likely, the bulls will try to regain control over the market, building an upward correction to the large resistance at the level of 1.1740. Around this level, bears will be especially active, as they will work on another fall in EUR/USD.
