2020 Elections: Biden wins also per Fox, markets set to focus on Georgia's Senate races

  • Joe Biden has been elected President according to all news networks.
  • Clear victory mostly priced by markets.
  • Two Georgia Senate races are critical to fiscal stimulus and of interest to markets.

President-elect Joe Biden – not former Vice-President anymore. The Democratic candidate has defeated President Donald Trump according to the Associated Press, NBC, ABC, CNN and also the conservative Fox News network. Moreover, the popular pro-GOP station has called Nevada and Arizona to Biden, while others are waiting for more results. 

Will Trump concede? That remains an open question, but perhaps irrelevant for markets at this point. A win for Biden has been mostly priced in by investors, who collectively bet on a mere delay in the results, not a contested election. After Fox's call, all the president's unsubstantiated claims of fraud seem to fade into the background

The more important question is – how much is Biden's victory priced in? Mostly so. Stocks advanced throughout the week but paused on Friday, seemingly slowing down with the vote count. Equities could extend their gains on Monday before profit-taking – a classic "buy the rumor, sell the fact." 

The safe-haven US dollar has been on the back foot around the elections, and it may now extend its falls before stabilizing. What about gold and the next moves for markets in general? Georgia is set to be on markets' minds.

Two Senate run-offs are due in January and they are critical for control of the upper chamber. With Republicans on course to have 50 seats and Democrats 48, a win for Dems in the two run-offs would cause a tie in the upper house. Vice-President-elect Kamala Harris would be able to break ties, thus flipping the Senate from Republicans to Democrats. 

A trifecta of wins – the Presidency, the House, and the Senate – would allow Biden to push through an ambitious stimulus package that markets desire.

On the other hand, the smallest majority possible is unlikely to enable Dems to pass major reforms. Business-unfriendly policies such as tax hikes and regulation are unlikely to pass muster as some of the party's Senators come from conservative states. That would be a win-win for markets – and that would depend on opinion polls toward the two run-offs.

Surveys in Georgia were considerably more accurate than in other states, including neighboring Florida and far away Wisconsin that was substantially off. Therefore, investors are unlikely to wait for the vote from the Peach State to move. 

Georgia's fresh esults showed Republicans ahead of Democrats in the first round of Senate races, but Biden is ahead of Trump in the presidential elections. The race for the White House will be called only after a recount, but in any case, it is clear that the two Senate races will likely come down to razor-thin margins.

Overall, Biden's election is mostly priced in, and now Georgia is on markets' minds. 

See: 2020 Elections: Markets are cheering, but what exactly? Some answers and what's next

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD holds onto highs despite souring mood

EUR/USD is trading above 1.22 but off the highs. US Durable Goods Orders jumped by 3.4% in January, better than expected, and jobless claims surprised with a fall to 730K. Q4 GDP upgraded to 4.1%, as expected. The dollar is down despite falling stocks and rising US yields.


XAU/USD drops further to $1770 ahead of critical support

Gold dropped further during the American session and bottomed at $1769, the lowest level since last Friday. The metal erased weekly gains and is back below $1780 as US yields keep rising.

Gold news

S&P 500: Day Ahead Outlook Inflation fears linger as doves hit turbulence

US equity markets look for direction on Thursday with mixed signals leading to steady and slightly lower trade. Inflation concerns haven't gone away as the US 10 year hits another year high at nearly 1.5%.

Read more

Crypto bull run on track amid surge in US inflation expectations

The crypto bull run has taken a breather after the gruesome drop in value at the beginning of this week. Bitcoin led the freefall, dropping from $58,000 to $45,000. Generally, all cryptocurrencies retraced and are now holding above key support levels to prepare for another upswing to new yearly highs.

Read more

US Dollar Index remains depressed below 90.00

The greenback manages to bounce off weekly lows near 89.70, although it keeps navigating a sea of red when gauged by the US Dollar Index (DXY).

US Dollar Index News

Forex Majors