The DOLLAR index.DXY fell about 1% to a low of 92.55 in intraday TRADING on Thursday as markets weighed the outcome of the U.S. election. Meanwhile, spot gold surged nearly $46 from its lows to the $1,950 an ounce mark; Major U.S. stock indexes rallied, with the Dow surging more than 600 points and major indexes on track for their biggest weekly gain since April. In the US presidential election, the Trump campaign is to file a lawsuit in Nevada accusing voters of voter fraud. At least 10,000 voters who did not live in the state voted, according to the Trump campaign. The trump campaign has already filed lawsuits in Michigan, Pennsylvania and Georgia seeking court orders to stop counting votes in those states. The campaign says it will also seek a recount in Wisconsin.
The Trump team will file a lawsuit in Nevada
According to the latest news from Fox News and NBC News, the Trump campaign will file a lawsuit in Nevada accusing it of “vote-rigging.”
The Trump campaign said on Wednesday that it had filed lawsuits in Michigan, Pennsylvania and Georgia seeking court orders to stop counting votes there. The campaign says it will also seek a recount in Wisconsin.
The former US ambassador to Germany will hold a press conference in Las Vegas on Friday morning to announce that the Trump campaign is filing lawsuits and will count every “legitimate” vote, the report said.
The Trump campaign reportedly said that at least 10,000 voters who did not live in the state voted.
Nevada has six electoral votes. Biden, the Democratic nominee, currently has 253 electoral votes, compared with Trump’s 214, according to NBC News projections. Five states have yet to vote.
With 86 percent of the votes counted, Biden leads by 49.3 percent to Trump’s 48.7 percent, NBC News reported. The remaining ballots are mail ballots received on election day, mail ballots received this week, and provisional ballots. With 86 percent of the votes counted, NBC News believes the election is too close to call.
Election officials in Nevada are expected to release the latest results at noon EASTERN time on Thursday. The state has not yet declared a winner.
America’s election is burning record money
A new estimate by the Center for Sensitive Political Issues, a US-BASED NGO that tracks us election spending, suggests that this year’s us presidential election will again be the most expensive ever, with a final cost of $14bn, double that of 2016 and three times that of 2008.
According to the website of Der Spiegel magazine on November 2, Democratic candidates and their supporters have raised a lot of money this year and spent $5.5 billion. Add in the campaign funds of billionaires Michael Bloomberg and Tom Steyer, and you have $6.9 billion. Republicans have spent $3.9 billion so far.
The Center for Sensitive Political Issues estimates that the race for the presidency between Trump and challenger Joe Biden will cost $6.6 billion, while the race for the Seats in the House and Senate will cost a total of $7.25 billion. The two projects combined amounted to $13.85 billion.
Since the beginning of the 21st century, the cost of us elections has risen from $4 billion in 2004 to $5 billion in 2008, $6 billion in 2012 and $7 billion in 2016.
In addition to the presidential election, all seats in the House of Representatives and about one-third of the Senate are up for grabs. Some seats are hotly contested, and candidates are also burning cash. The campaign of South Carolina Senator John Harrison, a Democrat, confirmed that it spent $34 million on television advertising alone in the third quarter.
According to the New York Times, eight of the 10 most expensive Senate RACES in history are up for grabs this year. Small and medium-sized private donors matter more than in any other election. Currently, 22.4 percent of total donations come from donors who give less than $200 to parties, candidates or organizations.
Market trend: the dollar plummeted, gold U.S. stocks soared
The dollar fell to a two-week low against a basket of currencies and a seven-month low against the yen as investors adjusted to the prospect that Republicans will retain control of the U.S. Senate and curb any major new economic stimulus.
Protesters took to the streets as U.S. election officials counted ballots in several states that will determine the outcome and Democrat Joe Biden moved closer to victory.
But a so-called “blue wave” of Democratic control of the Senate in congressional elections seems unlikely.
“I think the assumption is that Biden is in the White House, but the Senate won’t be in Democratic hands, so there won’t be that much stimulus,” said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York.
U.S. Treasury yields fell from four-month highs as a sharp increase in short-term supply to fund the stimulus became less likely, reducing the attractiveness of Treasuries and weighing on the dollar.
“Normally, a country with a large budget deficit, a large current account deficit, would have to offer a large interest rate premium to absorb the world’s savings, and because the economy is weak and inflation is low, we can’t do that, and I don’t think we can offer a high enough interest rate premium,” Chandler said.
Demand for the dollar has also been helped by increased risk appetite among stock investors betting that Republicans will snuff out any Democratic plans to raise taxes or tighten corporate regulations.
The dollar index fell about 1.0 percent to a low of 92.55. The dollar fell 0.68 percent to 103.77 yen, its lowest level since March 12.
The Fed concludes its two-day meeting on Thursday, but is not expected to announce any major changes in monetary policy.
“Today’s move by the Fed is a bit of a sideshow, but it is likely to reinforce forward guidance on potential QUANTITATIVE easing, which will be negative for the dollar,” said Justin Onuekwusi, portfolio manager at LGIM.
Friday’s U.S. non-farm payrolls data for October is the next major economic focus.
Gold rebounded to its highest level in more than three weeks on Thursday as increased bets on A Biden victory boosted hopes for more stimulus and weighed on the dollar. The Federal Reserve will issue a policy statement.
Spot gold rose more than 2.2 percent to a high of $1,948.21 an ounce, up nearly $46 from a session low.
“The market is expecting a stimulus deal in the next few weeks, and there’s a Fed meeting coming up today where we’re going to hear the Fed call for more stimulus,” said David Meger, head of metals trading at High Ridge Futures.
“The dollar has fallen sharply on expectations of additional stimulus following the election.”
U.S. stocks surged on Thursday as investors hoped the winner of the U.S. presidential election would soon be known.
The Dow Jones Industrial Average rose nearly 620 points or 2.2%. The S&P 500 rose 2.4% and the Nasdaq composite index rose 2.6%.
The gains helped push major indexes to their biggest weekly gains since April. The Dow Is up more than 6% so far this week. Over the same period, the S&P 500 and nasdaq rose 7.1% and 8.2%, respectively.
“A lot of the uncertainty of the election has passed and the market has reacted very positively. Not all, but at least the worst seems to have been averted. The market hates uncertainty and that could be a plus for a while, “said Brad McMillan, chief investment officer at Commonwealth Financial Network.