Dollar on the Decline for Third Session

The BoE's decision to boost the size of their QE programme took markets by surprise, with the Bank adding a further Gbp150bln in bond buys, which may make the path easier for Chancellor Rishi Sunak to later today unveil a sizeable stimulus package on the first full day of the second UK lockdown. GBP rallied in response, pressuring EUR/GBP to 0.9006, with GBP/USD also gaining amid a generally USD-weak environment.

Implied vols remain in retreat, with the front-end of the AUD/USD vol curve slipping to their lowest levels since mid-September as markets make peace with the increased likelihood of a Biden victory. This pattern's pretty uniform across development markets, with USD/JPY and USD/CAD vols also under pressure.

Focus turns to the further trickle through of US election results. A handful of states are still yet to be called, including key races in Pennsylvania, Arizona and Georgia.

The Fed rate decision is due later today. The FOMC aren't seen making any major changes to policy, but the press conference will likely draw focus given the eventful election this week.