The dollar is slightly lower vs. 9/10 of the G10 today in quiet election-day trading. Biggest gains are the AUD (+0.65%) and NZD (+0.44%) after the RBA (Australia’s central bank) kept rates unchanged in its monetary policy decision.
The U.S. Dollar Index touched a 12-day low yesterday at 103.576, a 1.01% decline from its most recent high on Oct 29th.
The Canadian dollar is +0.59% vs. the US dollar since Friday and the Mexican peso is +0.96% over the same period, the dollar demonstrating its susceptibility to election polls and the prospect of tariffs with a Trump win.
U.S. Treasury yields are higher today, reversing yesterday’s drop. Yields are essentially unchanged over 7 trading days reflecting a general wait-and-see holding pattern leading up to today’s election.
The economic calendar is quiet today and tomorrow, allowing sole attention on the election and its aftermath. Things pick Thursday with the FOMC’s second to last policy decision of the year, traders expecting a 25bps cut.
