Currency markets stable after status quo vote
What happened overnight
– Obama wins re-election, Democrats retain Senate, GOP retains House
– German and Spanish September IP weaker than consensus
– Norway September IP weaker than expected
– Swiss data confirm no intervention from SNB in October
The USD is moderately weaker, more notably against emerging Asia currencies than the G10 currencies as markets react to election news. EURUSD traded higher, climbing back to 1.2876 before pulling back, while USDJPY pushed to 79.81 lows before regaining 80. AUDUSD traded up to 1.0480, its best levels since September, but has also pulled back now. S&P futures moved lower as the election results rolled in and were down 1% at one point but are now up slightly on the day, while Treasury yields are broadly lower, with the 10-year note yield down 8bp. Spanish and Italian 10-year yields are a few basis point
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Credit Suisse