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  • DXY marks the biggest comeback since late-August, US bond yields slump from five-month peak.
  • Republicans are giving a tough fight to the blue wave hopes, Smarkets reflect 65% chances of Trump’s victory.

With the risk-off in full steam, the US dollar index (DXY) refreshes the highest levels since September 28 while taking the bids near 94.20 during early Wednesday. Market’s worries concerning the Republican re-election could also be witnessed in the US 10-year Treasury yields that earlier probed June highs before recently declining to 0.80%, down over right basis points (bps).

Smarkets portray only 36% chances that the Democratic candidate Joe Biden takes over the US Presidency. This weighs on the initial expectations that the Democrats will dominate in the American Congress, mostly known as the blue wave.

As a result, risks reverse the early-Asian optimism with S&P 500 Futures eroding 1.0% gains whereas Asia-Pacific stocks also declining by press time.

Despite the recently increasing odds of Republicans keep the reins, global markets praise the Democratic victory due to their stimulus-friendly nature, which in turn challenges the market optimists off-late.

Keep watching the updates here: Four more years for Trump or a victory for Biden? – Live coverage