Forex Today: Yen – the Hero as Trump triumphs

The Asian session was largely driven by risk-off sentiment, with the US elections exit poll results taking markets of their feet, after an unexpected lean emerged towards a Trump victory in most key swing states.

Heading into Europe, Trump has almost secured the US presidency with 267 electoral votes in his favor, ahead of the final verdict as vote count from Alaska, Michigan and Arizona is still impending. Broad based US dollar weakness is expected to remain the main theme ahead, while risk assets will continue to remain under immense pressure as Trump victory speech is seen imminent.

Calendar-wise, markets ignored in-line with expectations Chinese CPI data released earlier on the day. While we have the UK trade data ahead of BOE MPC member Haldane’s speech due later in the day. However, the US election results will continue to dominate sentiment across the fx board for the rest of the day.

Main topics in Asia

Donald Trump has become the most likely candidate to win today's US election

Donald Trump looks to be the most likely candidate to win today's US election, and as a response, the market has fallen hard with risk aversion being the name of the game.

Mexican Peso hits record low as Trump extends lead

Mexican Peso hit a record low of 20.1297 per US dollar as Trump continues to extend the lead over Clinton.

Gold rockets to 6-week highs on potential Trump win

Risk-off sentient is seen intensifying as we head into late-Asia, with investors fleeing to safety assets as markets have almost priced-in a Trump victory at the 2016 US presidential elections.

S&P 500, Nasdaq futures hit limit down

Risk-off persists at full steam as global equity futures witness blood bath, with S&P 500 and Nasdaq futures tumbling 5%. Both the index futures hit limit down.

USD/JPY remains near one-month low

Dollar-Yen has recovered somewhat from the low of 101.45 but remains at the lowest since October 4 as markets fear the White House doors have been opened for Trump.

Key focus for the day ahead

EUR/USD taps on 1.1300, then retreats ahead of final election results

The EUR/USD pair hit fresh nine-week highs at 1.1300 as markets almost priced-in a Trump victory. However, over the last hour, demand for the USD is seen returning as Clinton takes the lead in Nevada, key state. Clinton wins Nevada with 6 electoral votes.

France's Le Pen congratulates Trump win

Marine Le Pen, leader of France's far-right National Front party, has tweeted her congratulations to Donald Trump, the "new president of the United States".

A Fed rate hike on Trump presidency? Not in the near future...

As Trump edges closer to win the US presidential election, a key question to emerge soon will be, is the Fed going to be forced to pause any planned rate hike for the near future?

US: Impact of a Trump victory on Europe – Rabobank

Philip Marey, Senior US Strategist at Rabobank, expects markets to trade in a risk-off tone in the aftermath of a Trump victory where we may see renewed speculation that the ECB will have to re-think it's (deposit) rate policy if the euro strengthens further.