Talking Points:

• US Dollargains on commodity FX, drops elsewhere as Trump wins Presidency
• Japanese Yen set to post largest daily gain since Brexit vote amid risk aversion
• Sentiment-linked assets likely to remain under heavy pressure in the near term

The financial markets are reeling as results from the US presidential election point to a victory for Republican nomineeDonald Trump. The Associated Press is projecting that that Mr Trump has prevailed in Wisconsin, giving him the 270 electoral votes needed for a win. A separate report from NBC News has it that his rivalHillary Clintonhas called him to concede the contest having refused to do so earlier even as the math looked increasingly insurmountable.

The anti-riskJapanese Yenis soaring against all of its major counterparts, poised to secure its biggest one-day gain since the June 24 rally inspired by the outcome of the Brexit referendum. The sentiment-linkedAustralian, Canadian and New Zealand Dollarsare bearing the brunt of selling pressure as risk appetite crumbles market-wide. Stocks plunged in Asia and index futures point to continued blood-letting as European and US bourses come online.

TheUS Dollarhas put in a mixed performance. Prices deferred to sentiment trends when compared against currencies at both ends of the risk on/off spectrum, with the greenback rising against commodity-bloc currencies and falling against the Yen. Relative policy bets appeared to be in focus elsewhere however. The US unit falling against theEuroandBritish Poundas the increasingly remote chance of a December Fed rate hike undermined its appeal given ECB and BOEstandstill.

Fallout from the election outcome will almost certainly overwhelm other considerations in the hours ahead. Asnoted previously, Ms Clinton represented the “status quo” candidate that represented continuity and predictability for investors, whereas Mr Trump is more an unknown quantity. This means investors will probably continue to trim risk exposure until the dust settles and portfolios can be soberly reallocated, suggesting overnight trends are poised to continue in the near term.

Asia Session

European Session

Critical Levels