USD set for biggest 3-day loss since April as US election results are still unclear
Two days after the election the race is still too close to call a definitive winner. Here’s what we know:
- Nevada and Pennsylvania appear to be the two remaining tightest races.
- Risk aversion briefly pushed the dollar to one-month highs as Trump won Florida and secured new paths to keep the White House, eliminating any chance of a Biden landslide.
- A risk-on sell-off in the dollar quickly erased this one-month high and brought it to one-week lows as the margin of lead for Trump in key states, Wisconsin, Michigan and Arizona narrowed.
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November 5, 2020
EUR/USD 1.1830 GBP/USD 1.3078 USD/CAD 1.3076 AUD/USD 0.7234 USD/JPY 103.7800 USD/CNH 6.6121 USD/ILS 3.3779 USD/MXN 20.7291 USD/CHF 0.9064 USD/INR 74.3887
USDThe greenback continues to slip for a third day as risk-on trading drives currency markets following the US election. The FOMC will release rate decision later today.GBPThe Bank of England announced its bond-buying program would expand by 150 billion pounds which was larger than expected. Sterling reversed losses on the news and strengthened towards the 1.31 level.EUR
EUR/USD broke through the 1.18 handle hitting a high of 1.1860. The common currency continues to strengthen for a third day as the US dollar remains on the defensive.CADUSD/CAD below 1.31 handle as risk-on trading supports commodity linked currencies. The currency pair hit lowest intraday level since Sept 7 of 1.3053.ASIA/PACIFICUSD/JPY fell below the 104 handle for the first time since March hitting a low of 103.61. AUD is higher versus the US dollar today breaking through the 0.72 handle and hitting a high of 0.7255.
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