Greenback Reverses as Biden Odds Creep Higher

Despite the overnight volatility in betting odds, Biden holds a strong likelihood of victory with just the key swing states of Nevada, Pennsylvania, Georgia and North Carolina still up for grabs. After a particularly strong start, the USD reversed into the London close, with the greenback finishing close to the lows - reflecting the incline of Biden's implied odds to win the White House throughout the day.

Equities rallied sharply, with the S&P adding near 3% and the NASDAQ as much as 4% at some points of the session. US Treasury yields fell from the off, with the 10y yield nearing last week's lows of 0.7443.

GBP was the sole currency in G10 to underperform the USD Wednesday, with Barnier appearing in front of EU lawmakers to warn that differences remain between the UK and EU on key topics including fishing, and level playing field regulations. GBP/USD traded either side of 1.30 throughout.

Focus Thursday turns to the several central bank meetings - with the BoE, Norges Bank and Federal Reserve decisions all on the docket. Both the Fed and the Norges Bank are not seen making any changes to policy, but the BoE are likely to up the size of their QE programme in order just as the UK re-enter lockdown restrictions.