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The latest election update from Edison Research shows that with 95% of estimated votes tallied in Pennsylvania President Trump has a narrow lead of 49.6% vs. Biden 49.2%. Trump’s lead, however, has narrowed from 100,000 to 26,300 in the past seven hours. 

The election has come down to the wire contrary to hopes for a Democratic blue sweep, disappointing markets positioned for a big fiscal stimulus packaged under Joe Biden’s leadership.

While Biden looks set to win right now, it will be difficult for him to approve the much-anticipated massive spending package with a split Congress. 

Market reaction

The dollar index, which gauges the greenback’s value against majors, has erased early gains to trade largely unchanged on the day near 92.60. 

The path of least resistance for the dollar is on the lower side, as the Federal Reserve remains committed to boost liquidity at frantic pace and may step up efforts in the event of a prolonged political uncertainty.