A whirlwind of weekend polls has turned up the heat in the showdown between Vice President Kamala Harris and former President Donald Trump, revealing a race so close you could cut it with a knife. Across the nation and critical swing states, voters are split right down the middle. High-stakes bettors swarmed “ Polymarket,” throwing shade to Trump and sunshine to Harris, narrowing the betting polls and stirring up fresh volatility in early Monday currency trades. By the Wellington Open, USD/JPY was already down over 75 basis points, dipping below 152.25, as traders scrambled to adjust to what’s shaping up to be the ultimate nail-biter.

This coin-flip election could serve Wall Street's heavyweights a buffet of policy shifts, sparking strategic moves faster than you can say “rate cut.”

Having weathered four U.S. elections from the FICC hot seat in Singapore, I can vouch for the thrill (and chaos) of these market moments—especially Trump’s jaw-dropping 2016 upset.

With the world’s markets currently orbiting the U.S. election and a Fed rate decision around the corner, Monday is primed for a frenzy of position adjustment as investors gobble up every new poll, prediction, and betting line like popcorn at a thriller. The election drama will likely hog the spotlight for the next 48–72 hours, relegating other news, earnings, and even economic data to the back row.

As the presidential odds tighten, the dollar and bond yields show signs of softening, almost as if the markets themselves are taking a deep, collective exhale. This subtle easing hints that Asian markets might be ready to rally, sparking a wave of short-covering. Speculators could be inclined to back off their trade tension bets, setting up a broad-based market lift. But the real question is: will this be enough to wake the sleeping giants and stir the animal spirits? With the Fed teasing a 25-basis-point rate cut this Thursday—and maybe another one just around the corner—markets may find themselves teetering on the edge, waiting to see if they’ll tip into full-blown bullish enthusiasm. The fuse is lit; all left is to see if it’ll spark a roaring blaze or just a flicker.

Historically, expectations of a Fed rate cut have ignited global market rallies, setting off a chain reaction of bullish fervor. But this time, the razor-thin election margin has everyone holding their breath. With the outcome balanced on a knife’s edge, that wildcard of “uncertainty” looms large, potentially capping any full-throttle bullish exuberance. Investors may tread carefully, caught between the allure of Fed easing and the intrigue of the election’s unpredictable impact. Buckle up—this high-stakes week promises a rollercoaster ride where just about anything could happen, and where caution may be the difference between reaping rewards and nursing regrets.

Beijing’s recent economic support measures may be losing their initial dazzle, but all eyes are already shifting to the main event: the National People’s Congress kicking off on November 4. Markets are alive with whispers of a fresh stimulus package, setting expectations sky-high and creating a buzz that’s hard to ignore.

Meanwhile, Japan takes a breather on Monday for Culture Day, meaning yen liquidity will be lighter than usual. With Tokyo markets closed, yen trading could get choppier than usual, especially as the latest U.S. election betting poll swings fuel the already smouldering volatility.

SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.

Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

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