EU Morning Report - US presidential election day
By NikolasX | November 6, 2012 7:19 PM EST
The euro (EUR) is trading sideways against most of its major counterparts, as market participants brace for the US Presidential Election. Attention, and uncertainty, turns to the US as today is the voting day for the nation’s next president. Up to now polls show that President Obama is still slightly favoured over Mitt Romney. Investors will be closely monitoring reports, commentary and exit polls as any surprise will move the market wildly.
§ OIL is rebounding after diving to 84.48; a near 4-month. The precious commodity, now trading above 85.00 US dollars a barrel, plunged on Friday following the Crude Oil Inventories release.
§ The Australian dollar (AUD) is strengthening across the board following the Reserve Bank of Australia (RBA) rate decision to leave its lending rate unchanged at 3.25% for November. The Aussie was trading around 1.0365 and jumped to 1.0430 after the decision was announced.
§ The US dollar (USD) is weakening versus the Japanese yen (JPY), piercing through the 80.00 level early in the EU session.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2810||SHORT @ 1.2810||57% of deals buy EUR|
|.||USDJPY||80.35||SHORT @ 80.35||52% of deals buy USD|
|.||GBPUSD||1.6005||SHORT @ 1.5995||47% of deals buy GBP|
|.||AUDUSD||1.0400||LONG @ 1.0400||35% of deals buy AUD|
|.||GOLD||1672||LONG @ 1672||64% of deals buy GOLD|
|.||OIL||85.20||LONG @ 85.20||76% of deals buy OIL|
|.||GBP||09:30||Industrial Output m/m in September||-0.6%|
|.||EUR||11:00||German Industrial Orders m/m in September||-0.5%|
|.||CAD||15:00||PMI in October||58.2|
The euro (EUR) has been falling versus the Australian dollar (AUD) since October 8th, when it peaked at 1.28265. The pair had found major support at 1.2360, but broke through it following the decision by the Reserve Bank of Australia (RBA) to leave its lending rate unchanged. This move has reinforced the downtrend; however market participants should be cautious of retracements.