Elections 2020: US Dollar Extend Gains as Trump Wins Swing States
The US dollar soared sharply after Republicans won several swing states and the lead between Trump and Democrats candidate Joe Biden narrowed.
Results show that Trump has won Florida and Ohio, adding 47 electoral votes to the total count. The president has also won Texas that accounts for 38 electoral votes. The initial results show that Donald Trump is leading in key swing states including, North Carolina, Pennsylvania, Wisconsin, Michigan, and Georgia. Meanwhile, Joe Biden is leading in Nevada and Arizona.
US dollar index soared above 94 levels, with expectations that the greenback will rise further if Trump sustains the lead.
US dollar rally is supported by the sentiment that Biden win could negatively impact the USD index performance amid Biden’s announcements for big stimulus packages. In addition, Biden is likely to make a better trade relationship with other big economies that will reduce the global economic uncertainty.
On the other hand, Donald Trump’s win could extend the volatility in the global economy due to its trade conflicts with China.