- The US dollar regains ground on risk aversion, as the Democratic blue wave seems less likely.
- The 10-year yield is back from the five-month high.
Risky assets have taken a hit in the last hour or so as President Donald Trump proves to take the lead in the key state of Florida, helping the safe-haven dollar to regain balance.
The dollar index, which tracks the value of the greenback against major currencies, has rebounded to 93.72 after hitting a low of 93.09 early Wednesday. The 10-year US Treasury yield has fallen from a five-month high of 0.93% to 0.88%.
With Florida leading Trump’s path and betting markets skewing the same for North Carolina, markets have ruled out the possibility of an easy win for Democratic candidate Joe Biden. The focus is now on Pennsylvania results, which could take a few days.
“A divided government would do little to live up to the optimism investors have already built around a Blue Wave and the supposedly huge fiscal package that would come with it,” said Bloomberg market reporter Kriti Gupta.
Credits: Forex Street
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