Dear Reader,

Today's overview of economic news and market action

• There was a cautious mood on markets throughout the European session yesterday …
• In the US equities opened higher, US Treasury yields rose and the dollar was on the defensive …
• Overnight though, as election results have started to come in, the dollar has firmly taken the ascendancy …
• Former President Trump has won the key swing state of Pennsylvania …
• Republicans have taken control of the Senate also. The House of Representatives race remains  a dead-heat …
• Against this backdrop, the dollar has moved higher across the board …
• EUR/USD is operating back in the lower half of $1.07-1.08 …
• Today, the focus will remain on the prospect of a “red sweep” for Republicans …
• Elsewhere, the data calendar is quite sparse …

All rates quoted are indicative market rates.

October data provided tentative signs of a turnaround in manufacturing sector performance, with both production volumes and incoming new work returning to growth. Although modest, the upturn in new orders was the strongest for nearly twoand-a-half years and achieved.

UK Chancellor avoids a “Truss moment”

The market reaction to this week’s UK Autumn Budget, suggests investor appetite has been tested by the scale of spending planned by the Chancellor in the next few years. However, this was far from a “Truss moment” which led to a plunge in gilts and sterling in Autumn 2022

October data provided tentative signs of a turnaround in manufacturing sector performance, with both production volumes and incoming new work returning to growth. Although modest, the upturn in new orders was the strongest for nearly twoand-a-half years and achieved against a backdrop of still subdued export demand.