DXY flows - post-election position reversals
Some position spike reversals and squeezes dominate out of the initial post election trade
Mkt eying glass half full vs glass half empty takes on convincing Democrat results
Post election position reversals tending to dominate, reflected in the broad dollar pullback but with particular emphasis on the highest beta and most short counters. That's tending to be reflected in the scaling of dollar moves (see below), with the slight exception being MXN that has perhaps seen a little extra help from the volatility pullback, lower US yields and bond pressure, and the regional take.
Glass half full coming from the decisive result that, you would hope at least, side track any potential for serious election dispute and chaos, while also delivering the gridlock that the market traditionally rather likes from the point of view of the little done the better. It does mean some dialling back on the prior ever ramping fiscal increases (although that too had got to the point of as much spillover financial impact damage as economic support), as well as perhaps some moderation of tech free for all, but broader risk proving supported today by the prospect of some containment of the types of policies that have been so impactful for the global economy. Maybe. It doesn't mean broader issues have gone away though so the spike lows on tech stocks need to prove themselves as post summer range holds rather than just near-term counter trend dip covering.