Bloodbath in Markets as Trump Closes in on Win

It’s been a bloodbath in the markets over the last few hours with the Mexican peso suffering particularly badly as Donald Trump edges ever closer to the White House.

The way markets have traded over the last couple of days and positioned ahead of the vote, you would think the election was going to be a routine victory for Clinton despite her name being dragged through the mud during the FBIs email investigation and the anti-establishment protest vote becoming ever more prevalent around the globe. Brexit should have been a warning for the markets and instead, it appears four months is more than long enough for such a historic even to be forgotten.

XAU/USD – Gold Continues to Lose Ground, Markets Await US Election Outcome

While the election still remains too close to call and is far from over, the momentum is strongly with Trump at this stage and the way voting has gone elsewhere, it’s difficult to envisage an outcome that doesn’t end with the Republican nominee in the White House.

Source – Reuters Eikon Terminal

Risk aversion is king ahead of the open in Europe, with Gold up more than 3%, the yen and swiss franc safe havens soaring. The Mexican peso has easily fared the worst though, down more than 12% against the dollar and in potentially in for a lot more pain to come.

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Should Trump secure victory, the US open is likely to get very messy with Dow futures down more than 700 points at this stage, far outstripping the already heavy losses being seen throughout Asia.

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