- EUR / USD stabilizes above 1.1700 in US trading hours.
- The US Dollar Index remains in positive territory near 93.50.
- Investors are waiting for the election results to be called in the battle states.
After plummeting towards 1.1600 in the last Asian session on Wednesday, the pair EUR/USD staged a decisive recovery and climbed above 1.1700. With investors stepping aside while they wait for election results to be called in the battlefield states, the pair appears to close virtually unchanged near 1.1710.
DXY stabilizes near 93.50 amid electoral uncertainty
With early exit polls showing US President Donald Trump outperforming most electoral polls, the risk appetite in the market that was fueled by a blue wave of optimism began to wane. The dollar began to gain strength against its rivals with safe-haven flows returning to the market and the US dollar index (DXY) rose to a new monthly high of 94.30.
However, former Vice President Joe Biden began to gain traction in some swing states and made it difficult for the USD to retain its strength. In addition, the major US stock indices opened the day strongly higher and put additional weight on the DXY’s shoulders. At time of writing, the index was up 0.15% on the day to 93.47.
Currently, Biden is clinging to narrow tracks in Wisconsin, Michigan and Nevada. On the other hand, Trump is in Georgia, North Carolina and, most importantly, Pennsylvania. Earlier in the hour, the Trump campaign in a statement said they will ask for a recount in Wisconsin, suggesting that markets are unlikely to find out who will be the next US president for the rest of the day.
On Thursday, the European Commission will publish its economic growth forecasts and Eurostat will publish retail sales data for September.
Credits: Forex Street
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