Markets are preparing for the results of US presidential election, as US electorate started voting earlier today. Nervous movements are seen on Tuesday, with US dollar trimming overnight’s losses but remaining within narrow range ahead of release of preliminary results, due late today.

Markets are showing expectations that Democratic candidate Hillary Clinton could win today’s election, which is expected to keep stability in financial markets. Otherwise, victory of Republican candidate Donald Trump is expected to spark a storm in the markets.

Dollar index returned near Asian high at 97.82, after dipping to 97.55 low during European trading.

The greenback strengthened against sterling and hit fresh session high, after quick pound’s recovery was capped at 1.2438, European high.

The Euro was little changed on Tuesday, holding within 1.1028/65 range and last trading at 1.1044. Technicals for the euro are bearishly aligned, but results of US election will define fresh direction.

The greenback held steady against yen and extended advance to fresh session highs at 104.80 zone and maintaining firm tone for the second day, ahead of election results.

Gold steadied on Tuesday, holding above Monday’s fall low at $1277, but with limited upside actions that formed near-term range between $1277 and $1285, where gold’s price is currently holding. The yellow metal faces two scenarios on the outcome from election. The first one is dollar supportive and could push gold price significantly lower, while the other scenario, which would raise strong fears in the markets, would show strong demand for safe-haven and boost the yellow metal.

European stock markets were mixed on Tuesday, with DAX and CAC40 trading lower and FTSE 100 staying unchanged in late hours of European session.

Wall Street opened slightly lower on Tuesday in great expectations of results of presidential election. Three major Indexes Dow Jones; S&P and Nasdaq were slightly lower and down between 0.1% and 0.2% after Tuesday’s opening., Market Analysis