US dollar lower as US voters take to the polls

Cate Camerota

November 3, 2020

US dollar lower as US voters take to the polls

The US dollar fell early in the session as investors moved to tweak portfolios as this year’s biggest risk event begins. The Bloomberg index that tracks the greenback fell the most in almost two weeks. Investors may be squaring positions rather than adding on new bets for the outcome. Polls are predicting that Democratic nominee Joe Biden will win over President Donald Trump which many economists think could be negative for the US dollar.

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FX Rates
November 3, 2020

Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.

EUR/USD 1.1721
GBP/USD 1.3008
USD/CAD 1.3139
AUD/USD 0.7138
USD/JPY 104.6100
USD/CNH 6.6769
USD/ILS 3.4142
USD/MXN 21.1023
USD/CHF 0.9144
USD/INR 74.4063
USD
Major focus for today is the US election. The greenback weakened as investors moved away from risk-off and safe haven assets.
GBP
Sterling is trading above 1.30 as the US dollar weakened across the board. The focus for the currency pair will be the Bank of England's decision due Thursday which may indicate more stimulus.
EUR
EUR/USD broke above the 1.17 level as risk sentiment shifted with US voters headed to the polls. The uncertainty created by the US election has dictated trading across all asset classes and one-day euro hedging costs have hit highs not seen since March.
CAD
USD/CAD dropped for a third day hitting its lowest intraweek level of 1.3143. The loonie strengthened as the risk mood was upbeat ahead of the US vote.
ASIA/PACIFIC
The Australian dollar came under pressure after the Reserve Bank of Australia announced it would trim its policy rate and expand quantitative easing program. AUD/USD first hit a low of 0.7028 before rebounding to a high of 0.7143 as the market risk tone shifted.

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See all of SVB's latest FX information and commentary at www.svb.com/trends-insights/foreign-exchange-advisory

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Source: Bloomberg

This article is intended for U.S. audiences only.

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WRITTEN BY

Cate Camerota

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