After a stellar surge this week, US equities could see a dip going into the weekend. The futures contracts for the Dow, Nasdaq, and the S&P 500 are dipping into the red at the time of writing, as investors continue their wait for the declared winner of the 2020 US presidential elections.

The S&P 500 Minis appear to be forming a symmetrical triangle formation, having posted lower highs and higher lows since notching a record closing price in early September. From a technical perspective, prices would have to best the 3549.6 mark in order to break out of this squeeze. Such a catalyst may arrive in the form of an official declaration over who has officially won the US elections, and such a monumental development could then spur equity bulls on to pushing US equities even higher.

Meanwhile, the Dollar index’s (DXY) initial post-election spike was capped around its 100-day simple moving average (SMA) once more before being reacquainted with the 92.45 support level, after tumbling below its 50-day SMA yesterday.

Given the rising prospects of a President Biden, the Greenback quickly rediscovered its easing bias as a Democrat-helmed administration could hasten a fresh round of US fiscal stimulus. Still, a divided government is likely to dampen the total value of the next fiscal support package, which in turn may stop the Greenback from capitulating.

With the make-up of the US government still in limbo at the time of writing, the Fed may have to step up its support for the US economy should the outlook deteriorate in the face of stubbornly rising Covid-19 cases. Having left US interest rates near zero and its bond-buying programme unaltered this week, Fed Chair Jerome Powell appears to have left the door open for further monetary policy support at the FOMC’s December meeting.

Investors are set to receive another major health check over the state of the world’s largest economy. The October US non-farm payrolls due later Friday are expected to post a sub-600k print, which would underscore the stuttering recovery in the jobs market and underscore the dire need for further fiscal support.

In terms of swaying global risk sentiment, the hard-economic data is likely to play second-fiddle to the latest developments surrounding the US presidential race. However, that isn’t to say that the NFP release doesn’t hold the ability to move the risk pendulum. A positive NFP surprise however could shore up support for the Dollar while potentially encouraging US stocks to end the week on a positive note.