Asia Summary and Highlights 6 November

Asia Session

The all important U.S. election have begun its closing/exit polls. While it is too early to call for swing states victory, the early exit polls seems to suggest Trump is at slight advantage or at least not as neck to neck as weekend expectations. Thus, we see a resumption Trump trade continue on Wednesday's Asia session. Early polls seem to suggest Trump has gotten North Carolina, and Georgia . They are a few of the swing state Donald Trump needs to get to have a shot at presidency. Trump trades cheer on that. As it is looking more and more likely a red sweep in the U.S. election, USD trumps major FX pairs. U.S. Treasury Yields jumped across the curve with the 10yr out performing 2yr. USD/JPY jumped to session high of 154.33 and is currently trading 1.38% higher at 153.65.

Despite U.S. three major equity indexes are cheering, regional equity indexes are mixed with the HSI leading in losses. AUD/USD is down 1.47% at 0.6541, NZD/USD fared better but still down 1.18% to 0.5936 while USD/CAD rose 0.56% as oil slips. Else, EUR/USD is down 1.3% and GBP/USD down 0.91%.

North American session

The USD was generally softer in North America with focus on the election meaning there was little reaction to a stronger than expected ISM services index of 56.0 in October, up from 54.9. Earlier September’s trade deficit of $84.4bn was near expectations, if significantly wider. 

USD/JPY fell to 151.50 from above 152 while EUR/USD advanced o 1.0930 from 1.09. GBP/USDD moved above 1.30 with EUR/GBP little changed but EUR/CHF advanced to .9435 from .94. AUD/USD rose to .6635 while USD/CAD fell to 1.3850. The CAD saw little reaction to dovish BoC minutes which showed a strong consensus for the more aggressive 50bps October 23 easing.