Forex news from the European trading session
US election:
- All geared up for the big day? Here's the latest rundown
- What is the timeline for the US election results today?
- Is Pennsylvania the likely tipping-point state for the election this year?
- The presidential race isn't the only thing that the market has to focus on today
Headlines:
- Brexit talks fail to agree on level playing field, fisheries, state aid - report
- European Commission on Brexit: We have not yet found a solution on fisheries
- Oil continues impressive bounce after overnight rebound
- Switzerland October CPI -0.6% vs -0.6% y/y expected
- China to halt purchases of at least 7 categories of Australian commodities - report
- RBA's Lowe: Australian dollar not a long way from fundamentals
- RBA's Lowe: Not saying negative rates will never happen, just extraordinarily unlikely
- Germany reports 15,352 new coronavirus cases in latest update today
Markets:
- AUD leads, USD and JPY lag
- European equities higher; E-minis up 1.2%
- US 10-year yields up 2.2 bps to 0.865%
- Gold up 0.3% to $1,900.50
- WTI up 3.3% to $38.04
- Bitcoin down 0.9% to $13,502
It is election day in the US and the market is feeling more optimistic to get the day going.
Equities are rallying strongly, building from gains yesterday as we also see Treasuries sold off with 10-year yields rising to a five-month high of 0.879% earlier.
European indices are pushing near 2% gains after a solid open while US futures climbed higher, extending gains from 0.5% at the start of the session to around 1.2% now.
The risk-on push is seeing the dollar and yen sold heavily with EUR/USD climbing from 1.1650 to 1.1718 and back above its 100-hour moving average.
GBP/USD also strengthened in a push from 1.2930 to 1.3005 but gains are being limited by the 200-hour moving average around the 1.3000 handle currently.
USD/CAD eased from 1.3220 to 1.3138 as oil prices also continued its impressive rebound from yesterday, with WTI trading up 3% to $38 so far on the session.
Elsewhere, AUD/USD climbed by over 1% in a push from 0.7030 to 0.7139 upon a break of its key hourly moving averages as buyers now contest a potential break above the 100-day moving average - seen at 0.7117.
The market is keeping in a more positive mood, underscoring its anticipation of a less dramatic election day/night ahead or perhaps there are punters out there looking to speculate on the outcome after the final polls yesterday.
However, just be mindful that things can all change rather quickly once the results start to pour in over the next 12-24 hours. Strap yourselves in and make sure to refill on your coffee, it is shaping up to be a potentially long night.
