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According to the latest report from Edison Research, Democrat candidate Joe Biden is leading in Arizona 50.1% vs 48.5% with 90% of the estimated vote tallied so far. However, according to BBC, Biden’s lead has shrunk to 46,257. 

Meanwhile, its neck-to-neck in Georgia, with 98% of estimated votes counted. 

The election has come down to the wire, contradicting hopes of a Democratic blue sweep. A split government will have a tough time living up to the optimism that investors had built around a Blue Wave outcome and the supposedly enormous fiscal package that comes with it. 

Market reaction

The dollar index (DXY) is rising in Asia seemingly on prospects of a split US Congress. Big gains, however, may remain elusive as the Federal Reserve reiterated its dovish stance on Thursday and expressed willingness to do more if required.