The already very interesting US elections took another twist late on Friday with the revelation that the FBI has reopened the investigation regarding Clinton’s emails. A potential blow to her campaign and the threat of President Trump sent the dollar tumbling down alongside stock markets.
Over the weekend, more details came out, and they seem less dramatic: it is unclear if Clinton is implicated. In addition, some analysts reached a conclusion that it does not materially change Clinton’s path for victory: millions have already voted and many others have already made up their minds long ago. In 2012, about 30% of votes were cast before election day.
Markets do remain worried, but not so alarmed, at least when looking at the US dollar. USD/JPY dropped quickly on Friday: the safe haven yen was sought after, and the pair lost some 100 pips to settle around 104.65. It even started the week with a weekend gap at 104.40.
However, the pair now reflects a less worried mood: dollar/yen is back at the 105 level once again, albeit below the peak of 105.50 seen on Friday, but well within the pre-weekend range.
US elections – all the updates
Also EUR/USD is sliding back. The data coming out of Europe was bang on expectations, so the move down is related to the elections.
