Closed in NY at $1.2813, after rate had recovered off session lows of $1.2764 to $1.2827, with reported offers placed at the 200-dma ($1.2828) providing the main resistance. US election exit polls/results began to filter through into the Asian session and acted to direct moves. Early exit polls from Florida favoured the Republican Romney and prompted dollar demand which pressed the rate to lows of $1.2783. However, as the night progressed and it looked increasingly likely that Pres. Obama would achieve the necessary electoral college votes to serve another 4-years it reversed the dollar’s course with strong sales then driving the rate to a session high of $1.2875. Strong offers placed into $1.2880 provided a counter and prompted some profit take sales that have since taken the rate back to $1.2855, settling around $1.2860 as Romney conceded defeat. Stops have been reported above $1.2885, though further offers seen into $1.2890/00. Bids placed at $1.2830/20 (200-dma today at $1.2827) ahead of $1.2805/00. US election fall out to remain a key driver of FX through the day.
EasyForexNews Research Team