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  • EUR/USD steadies above 1.1700 in American trading hours.
  • US Dollar Index stays in the positive territory near 93.50.
  • Investors are waiting for election results in battleground states to be called.

After slumping toward 1.1600 in the late Asian session on Wednesday, the EUR/USD pair staged a decisive recovery and rose above 1.1700. With investors stepping to the sidelines while waiting for election results in battleground states to be called, the pair looks to close virtually unchanged near 1.1710.

DXY steadies near mid-93.00s amid election uncertainty

With the early exit polls showing US President Donald Trump outperforming the majority of election surveys, the risk-on market mood that was fueled by a blue wave optimism started to fade away. The greenback started to gather strength against its rivals with safe-haven flows returning to the market and the US Dollar Index (DXY) climbed to a fresh monthly high of 94.30.

However, former Vice President Joe Biden started to gain traction in some swing states and made it difficult for the USD to preserve its strength. Additionally, major equity indexes in the US opened the day sharply higher and put additional weight on the DXY’s shoulders. As of writing, the index was up 0.15% on the day at 93.47.

Currently, Biden is clinging to narrow leads in Wisconsin, Michigan and Nevada. On the other hand, Trump is up in Georgia, North Carolina and, most importantly, Pennslyvania. Earlier in the hour, Trump campaign in a statement said that they will ask for a recount in Wisconsin, suggesting that markets are unlikely to figure out who is going to be the next president of the US in the remainder of the day.

On Thursday, the European Commission will release its Economic Growth Forecasts and the Eurostat will publish the September Retail Sales data. 

Technical levels to watch for