Biden's lead in the election race holds the US Dollar index at a low level

US Dollar index remains low today since no dramatic changes occurred on the currency markets over the night.

The likelihood of Joe Biden victory at upcoming presidential election grows and therefore investors feel confident about placing their dollars into the stock markets.

The reason for that is Biden’s intention to offer a fiscal stimulus package after the election, which is expected to have positive effect on the US economy and the stock markets in particular. Although several Wall Street banks forecast a stimulus package to come regardless of which candidate wins, it is anticipated to be a bigger one if Biden takes the presidency combined with Democrats also retake the Senate control.

Considering all of the above, there is no foreseeable reasons for the US Dollar to rise significantly in the nearest future. However, if Biden loses the lead in the election race, we might see some fluctuations again.