Top Headlines

US Elections: After the Panic – Profit & Loss

The question facing markets now is: what next?

The Trump Presidency: A Game-Changer for Markets – Financial Times (subscription)

Win for Republican poses questions for the dollar, gold and US equities.

Fed Worries Aside, Trump Presidency May Bode Well for Dollar – Reuters

It took just over eight hours for currency markets to abandon the prevailing logic of the past month – that a Donald Trump presidency would be bad for the dollar against its major peers. 

USD-Mexican Peso Volumes Spiked as Election Returns Came in – Forbes

Trading in US dollars vs. Mexican pesos spiked to 63 times normal levels between 02:00 and 03:00 GMT when results for key states in the American elections were announced.

Dollar Hits More Than Three-Month High vs Yen as Yields Spike After Trump Win – Reuters

The dollar hit its highest level against the Japanese yen in nearly four months, as US Treasury debt yields touched multi-month highs following Republican candidate Donald Trump’s victory in the presidential election.

Donald Trump’s Win in US Presidential Election Sends China Yuan to Six-Year Low Against Dollar – CNBC

The Chinese yuan plunged to a fresh six-year low against the dollar, tracking a broad rally in the greenback after Donald Trump won the US presidential election.

Trump Shock Weighs on Asia FX Sentiment; Yuan Bearish Bets Still Near 10-Month High – Reuters

Sentiment toward most emerging Asian currencies remained bearish in the last two weeks and is unlikely to recover soon as Donald Trump’s victory in the US presidential election adds to concerns about the region’s exports and ties with Washington, a Reuters poll showed.

Trump Victory Boosts FX Volumes and Uncertainty – Risk (subscription)

Activity in interbank forex set to exceed levels seen after UK referendum and Swiss franc shock.

Japan Ready to Take Action vs FX as Needed – Reuters

Japan’s government has been saying that it will take bold action against excessive currency moves when necessary, Masahiko Shibayama, an adviser to Prime Minister Shinzo Abe, said.

Don’t be Fooled by the Relatively Smooth FX Markets – Profit & Loss

We will likely see more flash moves in the FX markets in the coming two or three months.

“Hound of Hounslow” Faces the Kennel – Profit & Loss

In what is being seen as a surprise move, Navinder Singh Sarao, the UK-based day trader accused by US authorities of spoofing markets and contributing to the May 2010 flash crash in US equities, has pleaded guilty in a US court appearance following his extradition from the UK.

What to Expect in FX in the Post-Trump World –

The past 24 hours have proved an entertaining, and at times disturbing, display of the US Democratic process as the Electoral College resoundingly came up Trumps.

Regulatory News

How Will the Election Change the US Regulatory Landscape? – Profit & Loss

There could also be significant changes in the country’s regulatory landscape that financial services firms need to consider.

Trump’s Surprise Victory Changes the Game for Financial Services – American Banker

Once the uncertainty settles down, however, financial institutions are likely to embrace Trump’s deregulatory stance.

Trump Victory Lifts Wall Street Trading Desks – Wall Street Journal (subscription)

But the election win creates uncertainty about regulations banks have spent billions implementing since the financial crisis.

CFTC Faces Race Against Time to Pass Reg AT After Trump Win – HFM Week (subscription)

Lawyers question whether contentious algo trading regulation on source code access will be enacted.

SEC Widely Expected to Ease Post Crisis Rules During Donald Trump’s Administration – Wall Street Journal (subscription)

President-elect seen naming critics of Barack Obama’s response to financial crisis to positions at nation’s top markets regulator.

‘Gray Areas’ Remain in ESMA’s MiFID II Guidance – Waters Technology (subscription)

European regulator’s clarifications could be the last that firms get before directive goes live in 2018.

Brazil Central Bank Pauses Interventions as Trump Win Boosts Volatility – Reuters

Brazil’s central bank will not hold any reverse currency swap auctions for a second day after performing them almost daily since late last year, it said in a statement.

Company News

Platforms Benefit from US Poll Volatility – Profit & Loss

Early indications from FX trading platforms suggests all saw a good boost to activity during the US election results sequence.

Banks and Exchanges Enjoy ‘Trump Bump’ Trading Surge – Reuters

Banks, stock exchanges and brokers enjoyed a surge in trading volumes after a surprise victory for Republican presidential candidate Donald Trump sent investors scrambling to reposition their portfolios.

Market Savvy

Peso Sinks to Record Low, Ruble Rallies After Trump Victory – Nasdaq

The Mexican peso sank to a record low in the wake of Donald Trump’s unexpected victory in the US presidential election, while the Russian ruble shot higher.

Solid Dollar, Trump Fear Hurt Asia FX; Yuan at Fresh Six-Year Lows – Reuters

Most emerging Asian currencies fell on the dollar’s rebound on higher US Treasury yields, while concerns grew over negative impacts on regional exports and relationships with Washington after Republican Donald Trump won the presidency.

Canadian Dollar Slumps Against GBP/USD on Trump Result – Exchange Rates

The CAD to USD exchange rate has been meet with increased volatility following a surprise win for Republican candidate Donald Trump in the US elections.