Here is what you need to know on Thursday, November 5:
Volatility was the name of the game this Wednesday, as the US struggles to define who the next president will be. So far an according to AP, Joe Biden has secured 248 electors, while US President Donald Trump has 214. A majority of 270 is needed to claim a victory.
However, Trump is legally disputing three states: Wisconsin, as he asked for a recount there, Michigan to halt the counting of ballots, and finally Pennsylvania, where ballots counting could take beyond Friday.
The election was far closer than polls suggested, with Biden still a narrow favorite, although there was no blue wave. Equities soared after the initial sell-off, with Wall Street ending the day with solid gains. It could well turn into a bullish trap so caution is recommended.
Major pairs closed the day little changed from Tuesday’s closes, despite some wild intraday volatility. EUR/USD trades around 1.1720, while GBP/USD is below 1.3000 amid discouraging Brexit-related headlines. EU’s chief negotiator Michel Barnier warned that “very serious divergences remain” in Brexit trade talks, although the UK and the EU will likely extend talks into next week. The news has negatively affected the pound.
The Japanese yen advanced within range against the greenback, backed by weaker government debt yields. The yield on the benchmark 10-year Treasury yield fell to 0.76%, a fresh weekly low, indicating some caution, despite equities’ rally.
Gold surged to 1,916 but closed the day unchanged at around $1,900.00 a troy ounce. WTI posted a modest advance and finished just below $39.00 a barrel.
Bitcoin hits new 34-month high above $14,200 amid US elections roller coaster
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