Dollar extends decline on the session, erases gains from early election night

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The dollar has erased its early election night gain

Besides cable, the rest of the major dollar pairs have pretty much reversed the gains in the greenback seen on early election night when the race emerged to be a tight one.

EUR/USD is now up to a one-week high close to 1.1800 while AUD/USD has pushed back above 0.7200 as buyers try to push for a more meaningful technical break:

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Meanwhile, GBP/USD is also testing the highs from earlier close to 1.3040 while USD/CAD continues to hover closer towards some near-term support around 1.3100-10.

Elsewhere, USD/JPY is also dragged to a session low of 104.20 although key support is still seen closer to the 104.00 handle and that is yet to be broken this week.

The softness in the dollar comes as equities are continuing to stage a solid rally as the market continues to digest the election narrative. S&P 500 futures are up by 1.5% while Nasdaq futures are roaring with 2.4% gains so far on the session.

The bond market continues to hint that it is following the stimulus story but the dollar seems to be drifting towards following the equity market flows despite there being plenty of question marks still abound for now.

This article was originally published by Forexlive.com. Read the original article here.