Will the NFP Report Help the USD Bounce Back?

 The US dollar returned positive at the start of trading in the Asian session after experiencing a sharp decline against major currencies as market focus remained on the US election vote counting process.

The large decline in long-term treasury yields due to lower fiscal spending expectations, combined with rising equity and other risky assets, has put the greenback dollar under consistent and likely sustained selling pressure.

The dollar index, which measures the strength of the greenback dollar against six major currencies, traded up 0.2% at 92.75 (as of 9.30am).

The US dollar continued to trade lower against the safe-haven yen after falling to an 8-month low in the New York session.

Meanwhile, the Federal Reserve maintained the rate unchanged at the target range of 0-0.25% as expected by the market.

Biden still retains his advantage with 264 votes ahead of Donald Trump, 214 votes. The market focus is still on the counting process in several major states (swing states).

President Donald Trump is under pressure after two of his lawsuits were rejected by Georgia and Michigan courts, but he has not given up on continuing to claim wrongdoing in some areas and threatening to take legal action.

The market now expects that Joe Biden will be the next president, but with Republicans who will retain Senate power, it will certainly make it difficult for Democrats to pass larger fiscal spending as previously desired.

The issuance of the NFP employment report tonight will be the main focus of the market after seeing a slight decline in US unemployment claims last week.