XE Market Analysis: Asia – Nov 04, 2020

The Dollar shot higher overnight, as election uncertainty saw a rush into the safe-haven USD. Later, as risk appetite exploded, the USD fell back. The DXY moved from Asian lows of 93.38 to a high of 94.30 before falling back to 93.26 in early N.Y. trade. FX trade is likely to remain choppy until the final election results are known. Wall Street surged higher on prospects for a gridlocked Congress, while Treasury yields headed sharply lower. Incoming data saw the ADP employment survey miss expectations by a wide margin, while the trade deficit narrowed a bit more than expected.