US markets drifted ahead of the Mid-Term election results. Markets and polls are suggesting a clean sweep of both Houses by the Democrats, but they have been seriously wrong before, especially when President Trump is involved. The power of the Presidency is huge and this will continue. The US Dollar gained some ground, with the EUR surrendering 1.1200, while the GBP fell back to 1.3400.The RBA raised rates by 25 basis points, as expected, but the outlook was ‘dovish’. This may be the end of near-term rate rises, which unsettled currency markets, selling off the currency in response. The AUD crashed to 0.6970, looking extremely vulnerable, while the NZD held above 0.5600. All eyes remain on Washington.
