The USD remains trading near its weakest level in nearly three years. The situation occurred on Thursday due to a projected Democratic victory in the second round of the U.S. Senate in Georgia. Not without reason, it carries its own 'message' for some.

The condition indicates that there is likely to be loose fiscal and monetary policy within two years. The Dollar Index is tracking the greenback against a basket of six other currencies. It was down 0.1% at 89,472 and it is still at a volatile level.

That means it is still near an overnight low of 89.206. This is a level which is never seen before. More precisely is since March 2018. In addition, the American currency also reacted to many other aspects of the market.

Conditions of Some Currencies

USD/JPY was reported to be up as much as 0.2% at 103.29. That's because the yen is underperforming with a new emergency for Tokyo. The same situation is also occurring in Saitama, Kanagawa, and Chiba prefectures as Covid-19 cases increase there.

EUR/USD has different circumstances in the global market. The currency pair fell as much as 0.1% to 1.2317. Previously, both had hit near the three-year highs of 1.2346. Both got into the situation for a variety of reasons.

One is because the Euro was supported by stronger-than-expected German factory orders for November last year. This is the latest sign of the global manufacturing sector having a relatively strong performance towards the end of last year. That was amazing.

Meanwhile, GBP/USD fell 0.2% to 1.3581. This means that the position is below a nearly three-year high. Rather the highest level was at $1.3703.  That moment was seen on Monday, as England experienced another lockdown to handle the virus spread.

Predicted Winner in The Senate

Elsewhere, the risk-sensitive AUD/USD pair was down as much as 0.2% at 0.7786. Earlier, its second-highest level in nearly three years. The incident occurred on Wednesday in global markets. What about the newest update about the senate?

The Democratic pair of Jon Ossoff and Raphael Warnock is predicted to win two Senate seats in Georgia. This means their party will now have more control over the White House, Senate, and House of Representatives.

This raises speculation as well as expectations that President-elect Joe Biden will find it easier to push his agenda. One of them is to provide more stimulus measures as a solution to overcome economic problems due to pandemics.

Biden could legally run it all when his administration takes over in a few weeks. It is undeniable that Georgia's election results could have a big impact. One is the growing position of Joe Biden as president.

How Important Is Georgia's Election Result?

Georgia's election results mean there will be a faster and more aggressive spending package by 2021. Such a move could help drive a faster economic recovery. This is especially true when compared to Republicans who want to maintain their position.

The point is the desire of Republicans to maintain their majority in the Senate. That opinion was echoed by ING analyst James Knightley in a research note. In addition, the dollar is likely to experience increased pressure.

More precisely is in this more reflective scenario. Currency markets have remained relatively calm overnight. Despite the chaos and violence in Washington D.C. It was reported that supporters of President Donald Trump stormed Capitol Hill to stop certifying Biden's victory.

The main economic release on Thursday will be the claims figures for the initial weekly period. This is especially so ahead of the release of nonfarm payrolls on Friday. It is also after Wednesday's ADP figures showed that U.S. companies slashed jobs since April last month.