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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November 4, 2020
EUR/USD 1.1712 GBP/USD 1.2989 USD/CAD 1.3159 AUD/USD 0.7145 USD/JPY 104.4300 USD/CNH 6.6579 USD/ILS 3.4100 USD/MXN 21.0857 USD/CHF 0.9111 USD/INR 74.7462
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.GBPSterling 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.EUREUR/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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