Today we will talk about risk-on sentiment and how to take it into account when analyzing Crude oil and USDMXN.
* Traders on tenterhooks as U.S. election goes to the wire * Cable hit by report BOE considering negative rates * Dollar also in focus before Fed meeting By Stanley White TOKYO, Nov 5 (Reuters) - The dollar hunkered down to trade in a tight range against most currencies as investors awaited final vote counts in a nail-biting U.S. election that has seen Democrat Joe Biden edge ever so closer to the White House. Financial markets, however, were braced for days or even weeks of uncertainty as Republican incumbent President Donald Trump has opened a multi-pronged attack on vote counts in several states by pursuing lawsuits and a recount. The Federal Reserve, which is expected to keep policy on hold on Thursday, is also in focus as traders navigate market volatility in the wake of a knife-edge U.S. election that has pushed up the yuan and the Mexican peso.
The U.S. dollar jumped and risk-sensitive currencies weakened on Wednesday as early results in the U.S. presidential election showed a very tight race, prompting a wind-back of bets on a victory by Democratic challenger Joe Biden. President Donald Trump, who has so far trailed in polls, has maintained a slim lead in key battleground state of Florida, with the Chinese yuan and Mexican peso hit hardest by the spectre of four more years of his aggressive trade policy.