The US dollar continued to decline further into the European session by falling to a two-week low against a basket of major currencies as a surge in stock markets reduced demand for the greenback.
The global stock index soared as markets expected the victory of Joe Biden and the dominance of the Donald Trump administration in the Senate would bring balance between Democrats and Republicans.
With recent results showing Republican dominance in the Senate, it will reduce the chances for Joe Biden to formulate fiscal policies including approving corporate tax increases and loans for substantial spending.
Although the election results are currently seen to give Biden an advantage, uncertainty still arises following Trump who vehemently rejected the counting of votes in several major states that were not in his favor.
The safe-haven yen continues to maintain its dominance over US dollar trading by trading at an 8-month high.
While the euro continued to maintain its strengthening momentum to remain trading above the 1.1800 price level following the depreciation of the US dollar.
The pound, on the other hand, showed a slight decline but remained high above the price level of 1.3100 at the beginning of the European session.
The currency soared after the Bank of England (BOE) maintained interest rates and expanded its bond buying program besides being supported by the weak US dollar.
In addition to focusing on the development of election results, market focus is also on NFP employment report tonight which is expected to show slower growth than the previous month.
