U.S. Presidential Transition Kicks Off, Risk Receives Early Boost

Risk received a boost in the NY/Asia crossover as the General Service Administration ascertained Joe Biden as the apparent winner of the U.S. presidential election, triggering the formal transition process. The decision gives Biden's team access to briefing books, $6mn in funding and other resources needed for a smooth takeover of power. In a tweet, the sitting President Donald Trump praised GSA chief for her "dedication and loyalty" and noted that while "our case STRONGLY continues", he recommended the agency to "do what needs to be done with regard to initial protocols and have told my team to do the same".

• All three major e-mini contracts jumped in reaction to the news, building on yesterday's rally seen on the back of strong U.S. PMI data, headlines noting that U.S. President-elect will nominate ex-Fed Chair Yellen to be his Treasury Secretary, positive Covid-19 vaccine news & continued rotation to shares linked to economic recovery.
• T-Notes have slipped and last trade -0-02+ at 138-07+, sitting below Monday's worst levels.
• A risk-on feel has crept into G10 FX space, pushing the Antipodeans to the top of the scoreboard and applying pressure to safe havens, with USD & JPY lagging all of their peers.