The dollar whipsawed as the election took place, seeing lows at the 93 handle overnight, although as the night progressed and it appears a blue sweep is unlikely, the dollar reversed its initial losses and saw gains, however, the dollar index remains sub 94 around the 93.50 level. CNH continued to add to gains in what is a tight election race with key battleground results still yet to be reported, but CNH gains would be indicative of a Biden win given his more relaxed approach to China than President Trump. Also supportive were comments from President Xi, that China is willing to sign more high-quality trade agreements with other countries and it will reduce a catalogue of import restrictions.
EUR was flat against the firmer dollar but it saw volatile price action driven by the buck with EURUSD trading within a 1.1605-1.1768 range. Analysts at Rabobank write given a risk of a double-dip recession in Europe, dovish ECB and potential delays on its recovery fund, the desk “see the shine as coming off the EUR”, but maintain its EURUSD 1.16 view on a 3-month horizon. GBP was softer amid the dollar strength, but EURGBP was also higher with Brexit talks continuing to struggle on key sticking points such as level playing field, fisheries and governance. In relation the election, BBC sources suggested it is not relevant to the Brexit deal being negotiated or the chance of its happening, unless “Brussels is foolish enough to delay things”.
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EUR was flat against the firmer dollar but it saw volatile price action driven by the buck with EURUSD trading within a 1.1605-1.1768 range. Analysts at Rabobank write given a risk of a double-dip recession in Europe, dovish ECB and potential delays on its recovery fund, the desk “see the shine as coming off the EUR”, but maintain its EURUSD 1.16 view on a 3-month horizon. GBP was softer amid the dollar strength, but EURGBP was also higher with Brexit talks continuing to struggle on key sticking points such as level playing field, fisheries and governance. In relation the election, BBC sources suggested it is not relevant to the Brexit deal being negotiated or the chance of its happening, unless “Brussels is foolish enough to delay things”.
Drop your comments below!
----------------------------------------------------------------------------------------------------------------------------------
Why should you follow us on Tradingview?
-Premium author on TradingView
-6+ years experience in markets
-Professional chart break downs
-Supply/Demand Zones
-No junk on my charts
-Frequent updates
-Covering FX/ Commodities
-24/7 uptime so constant updates
