Forex Today: Dollar weak in election’s results night – What to watch for

Here is what you need to know on Wednesday, November 4:

Equities rallied, and the dollar plunged as the US votes. The presidential election took center stage and will remain the main market motor until a clear winner is declared. Given the pandemic context and mail-in ballots, which usually take longer to count, the final result may be available in a few days.

 Polling stations will be closing between 11:00 pm GMT and 06:00 am GMT, and the outcome on the most critical states will be out between 00:30 and 2:00 GMT.  The focus will be on the so-called “swing states,” such as Pennsylvania, Arizona, Texas, North Carolina and Florida, among others. These states have seen close contest in the last few presidential campaigns, different to those which are clearly biased towards one particular party.

With 538 electors in the country, a candidate needs an absolute majority of 270 or more to win the election.  

Concerns are that the absence of a clear winner could unwind turmoil in the US. Civil unrest is in the election’s menu, alongside Trump’s menace to take legal actions if the results are not known this Wednesday.

2020 Elections: Three states traders should watch, plus places that could provide surprises

Apart from the election, the pandemic keeps taking its toll on Europe. Record new coronavirus contagions and deaths have been reported, alongside tougher restrictive measures. The US also sees a spike in contagions.

Regarding Brexit talks, reports indicated that trade negotiations are still stuck when it comes to a level playing fill and fisheries, the two main issues that stalled progress months ago. However, progress was reported in other areas, including social security. EU’s chief negotiator Michel Barnier will report on progress to EU ambassadors this Wednesday.

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