U.S. Dollar Falls As Biden Edges Closer To Majority

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The U.S. dollar slipped against its major counterparts in the European session on Thursday amid risk appetite, as Democratic candidate Joe Biden inched closer to victory in the U.S. Presidential elections.

Biden leads Trump by 264-214 votes.

With victories in Wisconsin and Michigan, Biden is moving closer to the U.S. leadership.

Final results are still awaited in Nevada, Georgia, North Carolina and Pennsylvania.

Investors are cheering increasing odds of a Democratic presidency that will stoke growth in the world’s biggest economy.

The Federal Reserve is expected to keep policy on hold when it announces decision later in the day. The federal funds rate is at 0 – 0.25 percent.

The greenback weakened to near an 8-month low of 103.96 against the yen, 9-day lows of 0.9068 against the franc and 1.1814 versus the euro, after gaining to 104.54, 0.9133 and 1.1711, respectively in previous deals. The next possible support for the greenback is seen near 100.00 against the yen, 0.88 against the franc and 1.20 versus the euro.

The greenback edged down to 1.3103 against the loonie, 0.6737 against the kiwi and 0.7220 against the aussie, reversing from its early highs of 1.3178, 0.6679 and 0.7145, respectively. If the greenback falls further, it may find support around 1.29 against the loonie, 0.70 against the kiwi and 0.75 against the aussie.

The greenback touched as low as 1.3075 against the pound, down from a high of 1.2932 hit at 5:45 pm ET. The greenback is seen finding support around the 1.34 region.

The euro appreciated amid strengthening European shares.

The euro jumped to an 8-day high of 123.18 against the yen and a 2-day high of 1.0718 against the franc, off its early lows of 122.21 and 1.0666, respectively. Next key resistance for the euro is possibly located near 125.00 against the yen and 1.08 against the franc.

The euro rebounded to 0.9048 against the pound, from a low of 0.9006 set at 2:15 am ET. The EUR/GBP pair had set an 8-day low of 0.9069 at 1:45 am ET. The euro may target resistance around the 0.92 level.

The euro appreciated to a 3-day high of 1.5507 against the loonie, from yesterday’s closing value of 1.5393. Further rally may take the euro to a resistance around the 1.56 area.

The single currency bounced off to 1.6392 against the aussie and 1.7565 against the kiwi, from its early lows of 1.6300 and 1.7467, respectively. On the upside, 1.66 and 1.78 are possibly seen as the next resistance for the euro against the aussie and the kiwi, respectively.

The U.S. weekly jobless claims for the week ended October 31 will be featured in the New York session.

At 2:00 pm ET, the Fed announces its decision on interest rate. Economists widely expect the federal funds rate to be kept at 0 – 0.25 percent.

The material has been provided by InstaForex Company – www.instaforex.com

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