- US Elections: Biden passes up in Wisconsin, approaches Michigan and therefore the presidency.
- Dollar weakens before the news of the elections, before data.
- USD / JPY falls more than 100 pips from the highs of the Asian session.
The USD / JPY has just dropped to the lowest level since Friday at 104.14, and is trading around 104.30 on the pre-release of US economic data, although the focus of attention is the presidential elections.
After the Democratic candidate narrowed differences in Michigan and consolidated the difference in Wisconsin, the chances of a defeat for President Trump increased. This generated a modest rise in Wall Street futures and a fall in the dollar.
The expectation is set in the count in Georgia, Wisconsin, Michigan and Pennsylvania. Trump was leading in all, but is now at risk in Michigan and behind in Winsconcision. On the positive side, the election in Nevada is still uncertain.
The change of the last hours in the counting of the votes is that the prospect of a triumph for Biden have increased, Especially in comparison with what happened in the first hours of the vote, where the one who was heading to victory was Trump.
At 13:15 GMT in the US, the ADP employment report for October will be released, although these data could go unnoticed. Also today begins the two-day meeting of the Federal Reserve.
From a technical point of view, USD / JPY made a major reversal approaching the key support zone of 104.00. A confirmation below would leave the pair ready to extend the bearish run. To the upside, the key is around 105.70: a consolidation at higher levels could remove the current bearish bias.
Credits: Forex Street
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