What’s that about election jitters again?
The market is seemingly less worried about a tightly contested election for the time being as we see the dollar sold off in European morning trade, while stocks are feeling rather comfortable with European indices pushing near 2% gains now.
US futures are also trading up by over 1% currently while 10-year Treasury yields just hit a five-month high of 0.879%, up by over 3 bps on the day.
The overall mood on the session is weighing on the dollar and yen as we see both currencies dragged lower with AUD/USD up by over 1% now to 0.7132 and contesting its 100-day moving average @ 0.7117.
Elsewhere, GBP/USD is also nudging higher to near 1.3000 and a test of its 200-hour moving average with offers also layered at the figure level for now.
This time around though, the market may also be gearing itself up for a ‘blue wave’ outcome but we’ll see once we get into the count later in the night.