US dollar index fade upside momentum, S&P 500 Futures again pierce 3,400
- DXY eases from five-week high, struggles to keep first daily gains of the week.
- S&P 500 Futures wobble around 3,400, with over 1.0% intraday rise.
- US President Trump gives a tough fight to Democrats, final results to take longer.
With the recent swing in market risks, backed by fresh hopes of Democratic victory, the US dollar index (DXY) slips further down below the multi-day high flashed in early Asia. The risk-on mood also favors S&P 500 Futures to gain more than 1.0% while probing 3,400 ahead of Wednesday’s European session.
As per the latest tally for the 2020 US elections, President Donald Trump gains around 150 seats but his Democratic rival Joe Biden is far ahead with more than 220+ count. Although final results are less likely to be known before Friday, the recently impressive run by the Democrats keeps blue wave hope on the table.
With the expectations of the Democratic Party’s victory in both the American houses, traders also aim for easy money policies from the US policymakers, which in turn weigh on the US dollar and help the risk barometers like stocks and treasury yields.
Against this backdrop, DXY drops to 93.82, up 0.44%, while S&P 500 Futures add 1.10% to cross the 3,400 threshold at the time of writing.
Moving on, traders should keep an eye over the election updates, for fresh impulse. Also likely to entertain market players are the US ADP Employment Change and Services PMI data for October.
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Technical levels