forexsq - The US Dollar weakened in overnight trade as risk appetite swelled across financial markets â€“ weakening forex tradersâ€™ demand for the go-to haven currency â€“ in the aftermath of the US general election. The ballot handed victory to President Barack Obama while challenger Governor Mitt Romney conceded. As we argued yesterday, any outcome that produced a clear winner was likely to be greeted by investors hopeful for a swift re-orientation toward resolving the looming â€śfiscal cliffâ€ť fiasco.
Looking ahead, a quiet economic calendar is likely to keep the election front and center as financial markets around the world take their opportunity to respond to the results. S&P 500 stock index futures have erased earlier losses ahead of the opening bell on Wall Street, suggesting the risk-on bias into the hours ahead. Investorsâ€™ chipper mood may not prove lasting however, opening the door for the greenback to mount a swift recovery.