Market wrap: US dollar 0.8% higher on the day post FBI conclusion - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

Global market sentiment: Risk sentiment remained buoyant in the wake of the FBI’s absolution of Clinton. The S&P500 is up 2.1%, bond yields are slightly higher, and the MXN and AUD outperformed.

Interest rates: US 10yr treasury yields maintained yesterday’s rise which was catalysed by the FBI news, trading up to 1.83% during the NY session. The 2yr yield also remained elevated but slipped from 0.83% to 0.82%. Fed fund futures firmed slightly, pricing an 80% chance of a rate hike in December.

Currencies:  The US dollar index benefitted from the FBI news and is 0.8% higher on the day. EUR fell from 1.1080 to 1.1028. USD/JPY extended the earlier rise to 104.63, thee safe-haven yen the worst performer on the day. AUD outperformed the majors, rising from 0.7670 to 0.7708. Apart from the risk-seeking mood, further gains in iron ore (to a 22-month high) and coal helped support the AUD. NZD ranged between 0.7294 and 0.7325. AUD/NZD extended its rise from 1.0500 to 1.0537.