• The US Dollar edges lower on Wednesday after markets labelled Harris as the winner of Tuesday’s presidential election debate. 
• US CPI data for August is the last point for the Fed to take into account before next week’s decision. 
• The US Dollar Index falls back below 101.50 and could extend decline if US inflation comes lower than expected. 

The US Dollar (USD) eases a touch on Wednesday, with several news correspondents commenting that Vice President Kamala Harris has won the presidential election debate between her and former US President Donald Trump. The victory is a very small one though, not a landslide at all. Expectations are that Kamala Harris will now gain some points in the polls, though it will still remain a close call towards the November 5 elections. 

On the economic data front, the US Consumer Price Index (CPI) release for August will focus all the attention for this week. Markets see this as the last data point for the US Federal Reserve (Fed) and its Federal Open Market Committee (FOMC) to make their interest rate decision next week. A softer CPI release would open the door for a 50 basis point rate cut, while a steady or stronger CPI number might limit the outcome to only a 25 basis point rate cut.