GBP/USD drops to the session low at 1.2920, down 0.4% intraday, while heading into Wednesday’s London open. The Cable earlier surged to 1.3140, before bouncing off 1.2934, while Incumbent US President Donald Trump is reported to have won Iowa, Texas, Florida and Ohio, thwarting Joe Biden’s hopes of scoring a major red state victory as the race for the White House again proves far tighter than the polls had indicated. EUR/USD has retraced almost all of Tuesday’s gains although it is currently trading off its early morning low at 1.1640. Given the risk of a double dip in economic activity in Europe, a dovish ECB and a delay over dispersing the EU’s Recovery Fund we see the shine as coming off the EUR, Rabobank reported, at this stage we retain our forecast of EUR/USD at 1.16 on a three-month view. The market focus will remain on the US political development, which, along with the broader market risk sentiment will continue to influence the USD price dynamics and infuse some volatility around the GBP/USD, EUR/USD, and USD/JPY pairs. The Dollar Index was up 0.6% at 94.115. It had shed 0.9% on Tuesday, its biggest daily drop since late March as traders had bet on a clear cut victory for Democrat candidate Joe Biden. USD/JPY rose 0.4% to 104.91, while the risk sensitive AUD/USD fell 1.3% to 0.7065.