Markets on Alert Await US Election Results


 Caution gripped currency markets as investors focused on developments during the midterm elections in the United States.

The US dollar remained trading weak around one-month lows against most major currencies as markets entered the European session.

According to the BBC, the Democrats are now leading in the Senate with 48 seats out of 50 contested seats, while the Republicans have 47 seats.

However, in the House of Representatives, the Republicans lead comfortably after winning 198 seats out of 218 contested seats. Unfortunately, the Democrats only got 173 seats in the House (as of 4.40pm).

If this fierce 'battle' ends with a Republican victory, President Joe Biden's administration will face difficulties in implementing its plans in the future.

Meanwhile in the development in Europe, the euro still maintains its strengthening at around the parity price of $1 although the price movement is seen to be flat in today's trading session.

The pound gained slightly after moving slowly in the Asian session, with investors now awaiting the release of UK economic data on Friday.

On the other hand, the Aussie and New Zealand dollars each held on to gains even as gains stalled as investors cautiously awaited the outcome of the US election.