Basically, the outcome allows the Democrats to have control of Washington, if both Democrats win, that makes it a 50-50 tie in the upper chamber, with Vice President-elect Kamala Harris as the tiebreaker vote to give the party control of the Senate. This outcome could facilitate the passing of new coronavirus relief, raising hope for the country’s economic recovery.
Investors are happy in one sense that Washington will no longer spend its time in fighting and spend more time on what is happening to the economy and the impact of the pandemic.
The USD has found some ground in terms of pricing and looks like it may regain some of its recent losses, investors hate uncertainty and with the Georgia runoffs out of the way, markets can now focus on the matters at hand.
The FOMC will release its minutes this morning, expectations are that nothing will change, however, the next meeting maybe different due to the election results as the Fed tends to stay muted during the election campaigns.
The USDCAD has come off its lows and will likely range trade over the near term.