EU Morning Report - Obama's reelection weakens dollar
By NikolasX | November 7, 2012 8:56 PM EST
The euro (EUR) is strengthening against most of its major counterparts, following the US Presidential Election results. President Barack Obama secured a second 4-year term, which translates to at least two more years of Ben Bernanke as the Chairman of the Federal Reserve. Market participants should monitor and anticipate the outcome of the Greek parliamentary vote on the latest austerity measures due tonight. The government is expected to pass the reforms but any surprise or uncertainty throughout the day could move the market considerably.
§ Gold (XAU) is advancing versus a weakening US dollar (USD). The precious metal is currently above 1725 US dollars an ounce, having started the day yesterday at 1685.67.
§ The Australian dollar (AUD) is strengthening across the board. The Aussie is now trading around 1.0460 having recorded a 6-week high at 1.0480 late in the Asian session
§ The US dollar (USD) against the Canadian dollar (CAD) produced a near monthly low at 0.9874.
Stay in tune throughout the day with foreign exchange bullets!
|.||EURUSD||1.2810||LONG @ 1.2810||53% of deals buy EUR|
|.||USDJPY||79.90||LONG @ 79.90||52% of deals buy USD|
|.||GBPUSD||1.5965||LONG @ 1.5965||47% of deals buy GBP|
|.||AUDUSD||1.0405||LONG @ 1.0405||30% of deals buy AUD|
|.||GOLD||1705||LONG @ 1705||61% of deals buy GOLD|
|.||OIL||87.30||LONG @ 87.30||63% of deals buy OIL|
|.||EUR||10:00||Retail Sales m/m in September||-0.1%|
|.||EUR||11:00||German Industrial Orders m/m in September||-0.5%|
|.||OIL||15:30||Crude Oil Inventories||1.8mil|
Silver (XAG) produced a stellar surge versus the US dollar (USD) as the markets participants started digesting the results of the US election. The precious metal rose from 31.1865 to 32.3000, a staggering 3.5% daily rise. There is momentum and this trend is likely to continue throughout the day, but investors should be cautious of retracements.