XE Market Analysis: North America – Nov 05, 2020

The dollar and yen have declined with coursing risk appetite in global markets driving gains in other currencies and asset markets. U.S. Treasury yields have remained in decline, narrowing the yield spread versus the Bund, gilt and JGB yields, among others. Markets are essentially discounting a Biden presidency and a split Congress. Although Democrats still have a narrow path to taking control of the Senate (there is a 48 versus 48 deadlock currently, with four seats left to be decided), most political pundits think it unlikely.