US politics is starting to rear its ugly head again

A Democrat winning in a red-state for the first time since 1992? That's enough to send some shockwaves across the country (and to Trump).

With Republicans losing ground here, it means that the GOP's Senate majority is just 51-49 (from 52-48) now - and that will make it more difficult for the party to push forward with its tax reform agenda.

Jones will take office no later than 3 January 2018, so the pressure is on now for the GOP to push through the final cut of the tax bill before that happens.

Meanwhile, most major currencies hit session highs against the dollar on the back of the news. USD/JPY fell to the 8 Dec lows of 113.15 and has since bounced back a little - but it has broken through the 100-hour MA with ease.

It's still early on after the news, but if there are reports to say that the GOP will struggle to push through the tax bill before Christmas then expect the dollar selling to intensify.