09:21 · 6 November 2024

Chart of the day - USDIDX (06.11.2024)

Markets are currently driven by the U.S. presidential election, with the highest volatility seen in the dollar, bonds, and cryptocurrencies. The USDIDX index is up 1.65%—the largest increase since the COVID panic in March 2020.

A Donald Trump victory in the U.S. presidential election is now increasingly likely. Republicans currently have 266 electoral votes, needing only 4 more for an official win; however, Trump’s victory has already been unofficially declared. Moments ago, Donald Trump and his party made an official speech to supporters, while Kamala Harris postponed her speech to tomorrow. Earlier today, we observed exceptionally strong market movements, with increases in the dollar, indices, and cryptocurrencies, and declines in bonds.

The market has now fully priced in Trump’s win, with gains taking on a more speculative and euphoric tone. At the time of publication, there has been a slight pullback due to profit-taking by speculative investors who were betting on a Republican win. The dollar index briefly surged by 1.90% to 105.2000 points but has now partially reduced gains to 104.9000 points (+1.58%). Investor attention will soon shift to tomorrow’s FOMC decision. With the current mild correction in USDIDX, the key support level remains above 104.5000 points, while levels above 105.6000 mark the beginning of the next resistance zone. After such strong gains, today’s close will be crucial to see if bulls can sustain this dynamic and speculative rally.

 

Source: xStation 5

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