US election result in limbo

November 9, 2020

Well after a drawn-out US election the media have called Joe Biden the winner but is it all over and done with?

The EURUSD made some gains on Friday, shaking off any uncertainty surrounding the election. The pair opened the day at $1.18236 and slid to early lows of $1.17944. Bouncing off those lows, the euro climbed to highs of $1.18903 late in the day. It is trading at that same level. The GBPUSD began Friday at $1.31433 and traded in a tight range early, falling to lows of $1.30908 heading into late trading. It rallied off those lows, peaking at $1.31764 two hours later. It is currently at the same level.

Indices opened and closed rather flat on Friday with the election results still up in the air. The Dow started the day at 28,418.96 and declined throughout the first half of the day, hitting lows of 28,078.27 mid-session. Climbing off those lows, the Dow hit highs of 28,568.42 late before closing at 28,370.75. It has started the new week with a spring in its step and is now trading at 28,609.30. The Dax took a different route than the Dow but ultimately ended up at the same destination – flat. The German index opened at 12,500.80 and climbed to early highs 12,592.51 before dropping to lows of 12,365.64 two hours later. It regained a chunk of those losses before closing at 12,479.28. Following along from the Dow’s positive lead, the Dax is now at 12,652.90 in early Monday trading.

The week ahead will be dominated by talk of the election results. Various media outlets have projected the results and given Joe Biden the victory, but not all is what it seems. While it is a popular method of calling an election, Donald Trump and his team have claimed there is widespread irregularities and fraud that have occurred. His team are set to launch court cases in several key states, while recounts are set to get underway. Only after all of these legal avenues are exhausted will we know who the next President will be.


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