US election unexpectedly close, USD erased gains as chance of Biden win increases

With mail-in ballots and early voting still being counted, many key battleground states have yet to make a formal call of whether the electoral votes go to Trump or Biden. Trends in Michigan and Wisconsin signal that there is a higher chance that Joe Biden could win the presidential election. Earlier in the trading session, the Bloomberg Dollar Spot Index traded as much as 1% higher before erasing losses. European equities remain within a range after erasing earlier losses while stocks in the US swung between gains and losses amid uncertainty of the election results.

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  • FX Rates
    November 4, 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.


  • USD

    The US dollar strengthened as markets moved to risk-off trading amidst uncertainty around election results in the US. The currency has since pared loses as trends in Michigan and Wisconsin signal a path towards a Biden victory.

    GBP
    Sterling dropped the most since September hitting a low of 1.2915 and since has retreated higher. The weaker currency could be attributable to investor concerns over the impact a Trump win may have on Brexit negotiations.
    EUR
    EUR/USD hit 1.1603 - a low not seen since July. The currency pair since reversed losses as markets move towards risk-off waiting on a clear US election result.
    CAD

    USD/CAD remains largely unchanged trading around 1.3150 after surging as much as 1.2% earlier in the session. The loonie strengthened alongside other risky assets including the US stock market and crude oil amidst the uncertainty of the election.

    ASIA/PACIFIC

    AUD/USD hit a high of 0.7222 early in the trading session and later fell to 0.7112 after a strong showing from Trump voters. The currency pair is currently trading around the 0.7150 level.

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Cate Camerota
WRITTEN BY
Cate Camerota

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