DXY Remains in Wild Swings amid Legal Challenges to Election

WikiFX News (5 Nov.) - With the US election completely dominating the movements in the dollar, the DXY fluctuated around 93.50 on Thursday. While Biden is six electoral votes away from the presidency, expectations are shifting away from a Trump victory.

The latest data has put Biden at 264 electoral votes while Trump at 214. As it stands, Biden will clinch a victory as long as he wins any one of the five states which are still left uncalled. Among them, Nevada will continue counting votes, but results will not be updated until the morning of Nov. 5 (local time), said an official of Nevada elections.

Trump‘s campaign has filed lawsuits in Georgia after its path to victory narrowed, requesting a halt to the state’s vote counting. The campaign also threatened legal challenges in Pennsylvania and Michigan and sought a recount in Wisconsin. The election results are facing legal challenges.

Risk aversion will persist if this keeps going to the courts, said Edward Moya, senior market analyst. In this case, the US dollar may embrace more upsides.

However, the current situation signals uncertainties in the election results, implying the DXY will see wild swings enduring in the short term.

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Chart: Latest election data