The US dollar continues to trade steady against its major rivals on Thursday as markets worry about the steep increase in coronavirus cases across Europe and the possibility of reimposition of lockdowns. At the time of writing, the US dollar index DXY is trading around 93.49.

Traders worry about the fresh round of lockdowns and how it could further delay economic recovery after the coronavirus pandemic, supporting the safe haven appeal of the dollar. France and Germany have announced fresh lockdown measures amid the rising second wave of cases with the onset of winter, sending the Euro lower against the greenback.

There is also an air of caution in the forex market ahead of the presidential election on November 3. Markets are widely anticipating Democrats to come to power in both Houses, securing a victory for Joe Biden over President Trump.

However, the likelihood of a closely contested elections could drive volatility in markets, especially if complete results do not get released on Tuesday, which could drive significant moves in the US dollar. Meanwhile, later today, the reserve currency could see some movement on the release of US’s Q3 GDP figures.