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USD, EUR/USD, GBP/USD React to US Election Latest with All to Play For

USD, EUR/USD, GBP/USD React to US Election Latest with All to Play For

Justin McQueen, Strategist

USD, EUR, GBP Price Analysis & News

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No Aggressive USD Bid Despite Contested Election

An election that is too close to call has seen a modest rise in the US Dollar with Trump performing significantly better than what polls had predicted. However, the toing and froing between who is leading the race has prevented an aggressive bid in the US Dollar. All eyes now focus on Pennsylvania, Michigan and Wisconsin. As it stands, results for Pennsylvania could take as long as Friday, while Wisconsin may be announced later today with Michigan taking a couple of days. That said, with Biden showing a slight lead in Wisconsin the race is currently neck and neck among bookmakers.

US Election What Happens Next

EUR/USD: Markets remain choppy and while yesterday’s blue wave trade characterised by USD selling has been unwound, the Euro has managed to claw back some gains into the European session to trade slightly below the 1.17 handle. Expect the pair to continue to trade broadly sideways until the election results become clearer. Short term resistance situated at 1.1700 with a break above opening the doors to 1.1750.

GBP/USD: Much like the rest of G10 FX, cable has whipsawed amid the uncertain election outcome. Elsewhere, Brexit headlines appeared more optimistic with reports of progress being made. However, Brexit noise has largely played second fiddle to the US election in GBP/USD and thus, EUR/GBP is perhaps worth keeping an eye on for GBP strength, which had made a firm break below 0.90. The bias for EUR/GBP remains a fade on rallies.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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