The US dollar is trading somewhat steady in early trading on Wednesday as markets cautiously await the results of the Senate elections in Georgia before making their next move. At the time of writing, the US dollar index DXY is trading around 89.29.

The results from the election for two senators from Georgia will dictate who will gain control of the US Senate. In case both wins go to Democrats, they will obtain a majority in the Senate and could push through key items on their agenda, including hiking taxes and increasing fiscal stimulus measures.

A double victory for the Democrats in these elections could improve the market sentiment and cause the US dollar to trade bearish as a result. The prospect of more stimulus could further dent the appeal of the reserve currency and send investors to trade riskier currencies, especially commodity currencies like the AUD and the NZD.

Since late March when it soared to a three-year high, the US dollar has lost around 13% of its value against its major rivals. With the Fed planning to keep interest rates low for an extended period of time and as US’s trade deficit gets bigger, the dollar is likely to remain weak in the near future.