The US election has yet to result in a definitive outcome. But, given the remaining states and the remaining votes in those states, it seems likely that Joe Biden will be the next President of the United States. This will not come as a surprise to the markets which was already pricing in a Biden victory. However, the margin is much smaller than most had anticipated. And it will be a modest surprise to the markets that the Republicans look set to retain control of the Senate. Those outcomes (President Biden, Republican Senate, Democratic House) remain to be confirmed but they seem more and more likely this morning. Most importantly, for the foreign exchange markets, it seems likely that the Presidential race will not result in an extended period of uncertainty which would have significantly pushed up the US dollar (and pushed down the Canadian dollar). As it stands the Canadian dollar is down just 0.2% this morning as we await final results.
