The market was marked by a drastic drop in major currencies at the start of the Asian session following recent developments on U.S. election results stating that President Donald Trump is now ahead of the number of votes in Florida.
The EUR / USD pair recorded a significant decline of around 80 pips following the report.
Florida, North Carolina, Ohio and Pennsylvania are among the major states or also known as ‘swing states’ that will determine a presidential victory. Reports that Trump is currently leading with 50.4% in Florida compared to Joe Biden’s 48.7% (as of 8.45 am) have pushed all major currencies plummeting significantly.
If Trump wins the vote in all those states, he will be President for another four years.
Joe Biden is reportedly ahead of the vote in Ohio with 55%, while Donald Trump is at 43.9% (as of 9.43 am).
In addition, the victory of Mitch McConnell, who is also the Senate majority leader in Kentucky, has also increased the risk to major currencies. This is because previously, McConnell was one of the main barriers to reaching an agreement in the coronavirus fiscal stimulus negotiations.
The dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded around 93.70 (9.30 am Malaysian time).
The risk of uncertainty about the outcome of voting results may not be known today also increased due to the increase in postal voting (mail ballots) more than doubled from 2016, complicating the work of counting the votes.
In fact, there are expectations from some officials in Pennsylvania and Michigan that the counting of votes may take until November 6.
