Top Headlines

Dollar Lower as Trump Wins US Election – Profit & Loss

In a result that was not seen by pollsters or markets, Donald Trump has won the US presidential election.

Stocks, Futures and Currencies Roiled by US Presidential Election Result – Pensions & Investments (subscription)

Stock markets and currencies around the world reacted sharply this morning to news Republican Donald Trump will be the next president of the United States.

Mexican Peso Plunges, Yen Soars in Jittery Asian Trade – Wall Street Journal (subscription)

Central bankers and traders around the globe scrambled to deal with soaring and plunging currencies, after polling results in the US presidential election showed Republican candidate Donald Trump clinching a surprise victory.

Traders Change Mind on Trump as GBP/EUR Retreat and USD Tipped to Benefit Under New President – Pound Sterling Live

Republican Donald Trump is to be the next President of the United States of America which is tipped to aid the US dollar over the longer-term and we have started to see the currency pare its initial losses against the euro and pound sterling.

Financial Markets Tell the World What They Think of Trump as President – The Guardian

Financial markets have told the world what they think of the election of Donald Trump as US president – and it is not good.

Random FX Volatility Characterises Early Returns in US Election – Profit & Loss

As polls in eastern states closed the FX market has seen some whippy price action, however according to dealers spreads remain reasonable.

Volumes High, Spreads Holding Up as US Election Uncertainty Grows – Profit & Loss

Sources are reporting “very high” volumes in FX markets as uncertainty over the outcome of the US election increases.

World Markets’ Plunge Signals Investors’ Doubts About Trump – New York Times

As the realization worked its way around the planet that Donald J. Trump will become the next president of the United States, global investors reacted as if the world had caught fire.

Banks Warn Clients to Brace for FX Volatility After US Vote – Reuters

Major banks have formally told clients to expect volatile currency markets in the aftermath of the US presidential election.

Japan’s Suga: FX Moves One-Sided, Rapid and Speculative – Reuters

Japan’s top government spokesman said the government was watching currency moves with strong interest as they were one-sided, rapid and speculative.

Bloomberg Chat Suffers Outage – Wall Street Journal (subscription)

Bloomberg terminals’ chat function suffered an outage, forcing finance professionals who rely heavily on the tool to do their jobs to resort to other forms of communication on a high-stakes day for global markets.

ICE Data Experiences Technical Outage as Charts, Feeds Go Dark – Finance Magnates

ICE Data’s feeds went dark yesterday, prompting a response from venues depending on the group for data.

Flashes Alight on FX – Euromoney

Flash crashes are still mercifully rare, but FX bankers worry that changing market dynamics will make them happen more often.

Egypt Expects Long-Awaited IMF Funds Next Week as Currency Slides – Reuters

Egypt expects to receive $2.75 billion in aid from the International Monetary Fund as early as next week, part of a $12 billion loan package it hopes will avert an economic crisis and halt a slide in its newly floated currency.

Regulatory News

Ramifications of a Trump Win in FX: Watch for Central Bank Interventions – FX Street

Foreign-exchange traders must be in guard as several central banks are likely to step in and intervene in their domestic currencies in order to ease the violent swings as markets digest a Trump presidency.

Europe to Formalise New Derivatives Rules on Nov 21 – Financial Times (subscription)

Europe is set to formalise its delayed new rules clamping down on banks’ ability to trade derivatives on November 21, pushing the introduction date back a few weeks so it does not clash with investment banks’ annual code freezes.

Head of UK Financial Watchdog Joins Calls for Brexit Clarity – Reuters

Britain should spell out what happens to financial rules as Brexit gets under way to help regulators do their job and avoid a “mess” in markets, a top watchdog said.

Watchdog: IRS Needs Strategy on Virtual Currencies – The Hill

The IRS needs to take additional steps to ensure that users of virtual currencies such as bitcoin are complying with tax law, a federal watchdog said in a report.

ACI’s Woolcock Replaces Bailey on MPG – FX Week (subscription)

ACI council votes to appoint David Woolcock as representative on Market Participants Group.

Company News

CLS Upgrades Members to New Gateway – Profit & Loss

CLS Group has completed its project to upgrade its settlement members to a new member gateway and market infrastructure channel.

ForexClear Sees Record Activity in October – Profit & Loss

ForexClear, LCH.Clearnet’s centrally cleared FX operation, reported record volumes in October, driven in large part by activity in Latin American currencies.

CME Group Releases October’s FX Futures and Options Metrics – Finance Magnates

Mexican Peso options ADV reached new record highs as the US presidential race has tightened.

Study: US Corporates Hedging Less FX Exposures – Profit & Loss

A recent study from Chatham Financial finds that less US corporates are hedging their currency, interest rate and commodity risk exposures than three years ago.

Market Savvy 

Dollar, Mexican Peso Drop as Trump Secures US Presidency – Nasdaq

The US dollar dropped more than 1%, swept sharply lower as Donald Trump upended market expectations as he won the US presidential race. 

Asia Markets Jolted by Trump Win – BBC

All regional markets closed lower, with money flowing into safe haven stocks, gold and currencies including the yen.

Australian Dollar Starts to Recover Initial Losses on Shock Trump Win – Pound Sterling Live

The pound to Australian dollar exchange rate surged higher by nearly 3% in Asian trade but has since pared back those gains as a Trump victory is confirmed.