USD slips on Election Result


The US Congressional Election: Democrats have seized the House, while the GOP retained the House. The Democrats also had success at the state governorship level. Initial results point to the Democrats gaining about two dozen House seats, while Republicans expanded their hold on the Senate. The results look to be largely as polls predicted, and there appears to be some relief in the GOP that they managed to hold the Senate, winning a number of closely contested seats, such as Indiana and Texas, which led Trump to declare a “tremendous success.” For Democrats, the results are not quite the blue tsunami they had hoped for, but nonetheless taking control of the House will put a check-and-balance on Trump’s administration.

The Greenback weakened as the results became apparent, with EURUSD and GBPUSD rising to 1.1471 and 1.3148, respectively before giving back a little of the gains.  USDJPY fell to 112.95 before recovering to 113.15. The antipodean currencies continued their recovery as the good inflation and jobs data from New Zealand (ahead of tonight’s interest rate announcement) bolstered the Kiwi in particular. The NZDUSD is now into its 5th straight day of gains and trades at a key resistance level at 0.6750. AUDUSD trades at 0.7240 up 165 pips from the beginning of the month.

Stuart Cowell

Head Market Analyst


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