FxWirePro: Dollar declines, safe haven assets rise on US election uncertainty

Safe haven currency Japanese yen gapped up against the dollar on Monday by more than 40 pips and went to gain to 111.3 per dollar, as fresh waves of uncertainty hit the US election outcome. On Saturday, in a post on Medium, Marc Elias, the Clinton team’s general counsel, said the campaign would take part in the Wisconsin recount being set off by Jill Stein, the Green Party candidate, and would also participate if Ms. Stein made good on her plans to seek recounts in Michigan and Pennsylvania.

The dollar, which has been trading strongly against all of its major counterparts since Donald Trump’s victory on November 8th, is in decline today. The dollar index, which is the value of the dollar against a basket of currencies, is currently trading at 100.96, down 0.36 percent today so far. The gold, which is considered as a safe haven asset is up 0.75 percent, trading at $1192 per troy ounce. Silver is up 1.8 percent. However, the risk aversion hasn’t shown its ugly face yet and equity market is relatively calm. The US benchmark stock index, S&P 500 is currently trading at 2210, down just 0.1 percent. Some of the risky assets like copper is up too and by 1.9 percent.

The lower probability of a major upset during the recounting process is what keeping the market calm, however, if that change, we are likely to see big reversals in post-election moves.