This Tuesday the dollar saw a massive decrease which was not seen since March 2020, when traders bet on a pronounced victory of Democrat representative Joe Biden.
In addition there have been the following changes in price GBP/USD fell 1%, EUR/USD dropped 0.6%, as well as AUD/USD dropped 1.3%, while USD/JPY rose in price 0.4%.
Donald Trump, the current president of the United States, won in these elections the following states: Ohio, Florida and Iowa. These news undercut the previous expectations of a confident victory for Joe Biden. While Georgia and North Carolina are still in the air together with several other major states including Pennsylvania, Wisconsin and Michigan, which are currently counting the votes and traders are getting ready for a possibility that the results of elections will not be known this Wednesday.
The economy and the coronavirus were the top concerns of the voters. The uncertainty remains such as vote counting can last several days, postponing the outcome. According to Bloomberg, Biden has 85 electoral votes, and Trump 72.
A victory for Biden had been anticipated to result in a massive trigger to support the economy. The democrat candidate was seen to be more eager to trade with China and other trade partners than its republican opponent Trump.
The pandemic hit economy is expected to pass big stimulus packages under the presidency of Biden. This should boost such risky currencies as NZD and AUD. However, if Biden becomes successful in promoting those packages depends on his victory in the Senate and the House of representatives.
The pair USD/CNY rose 0.6%, with the Chinese currency falling regardless of the country’s services sector increasing for half a year already, as one of the largest world economies recovers after the coronavirus pandemic.