North American Summary and Highlights 6 November
Overview - After gaining sharply on the election results in Asia the USD stabilized in Europe and North America.
North American session
The reaction to the election was largely done in Asia and with no data the USD saw little further advance in North America. EUR/USD found support around 1.07 while USD/JPY held above 154. EUR/JPY moved up to 166. Most other currencies saw little movement. The count in the House remains undecided but Republicans currently have the lead.
European morning session
After gaining sharply in Asia on the news of a Trump victory and a likely Republican clean sweep, the USD was generally little changed in Europe, but the AUD and scandis rallied somewhat after overnight losses and the CAD also slightly outperformed. EUR/CHF recovered after an overnight drop. European yields were generally lower, with EUR 2 year yields down around 10bp, perhaps reflecting concerns about tariffs being imposed under Trump.
Otherwise there wasn’t much news. German manufacturing orders rose a larger than expected 4.2% in September after a revised 5.4% drop in August, but the final Eurozone PMIs were revised higher. Neither had any notable impact on the EUR.