Dollar May Drop Below 80 Yen on Vote, Japan Holiday, CMC Says

Nov. 2 (Bloomberg) -- Traders may use the combination of U.S. election results and a Japanese holiday to push the dollar below 80 yen, according to CMC Markets.

“Early poll results of U.S. mid-term elections will hit a quieter-than-usual Asian Wednesday session as Japan is shut for a holiday,” Ashraf Laidi, chief market strategist at CMC Markets in London, wrote in an e-mailed report today. “This runs the risk of traders attacking the 80-yen figure on election volatility, especially after dollar-yen ended October at a new all time monthly low.”

The dollar gained 0.3 percent to 80.72 yen as of 2:15 p.m. in London, after slumping yesterday to 80.22 yen, the weakest level since April 1995. The Dollar Index lost 0.7 percent to 76.740.

To contact the reporter on this story: Lukanyo Mnyanda in London at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net