USD set for biggest 3-day loss since April

Cate Camerota

November 5, 2020

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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FX Rates
November 5, 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 1.1830
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
USD
The 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.
GBP
The 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.
CAD
USD/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/PACIFIC
USD/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.

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at fxadvisors@svb.com.
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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