EU Morning Report - Obama's reelection weakens dollar

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By NikolasX | November 7, 2012 8:56 PM EST

Easy Forex

 

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!

 

. Pivot Preference1 Sentiment2
. 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
1 data generated by Trading Central, 2 data obtained from easy-forex Inside Viewer
.
Currency Time (GMT) Event Forecast
. 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
Movers Shakers
XAGUSD
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.

 

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