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Bonds slide stocks slip as US election looms

Published On Tue, 22 Oct 2024
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The yen sat by a 2-1/2 month low at 150. 67 per dollar while the Australian and New Zealand dollars were also pinned near multi-month lows at $0.6655 and $0.6021 respectively.
Analysts say the dollar's recent rally reflects markets pricing a Donald Trump victory in the U.S. presidential race and a stronger currency as his trade, tax and immigration policies will likely lead to higher inflation and higher yields.
"With a victory for President Trump now priced into currency markets, AUD/USD has modest rather than large downside risk from when the election results start to be released," said Commonwealth Bank of Australia strategist Joe Capurso in a note.
"With Vice President Harris now the underdog, the market reaction to her victory would likely be larger than a victory by President Trump."
A relatively bare data calendar puts extra focus on U.S. earnings for insight into the economy and markets' mood.
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