- Australia AiG performance of construction index rose to 35.8.
- U.K shop price inflation rose 1.5% in October.
- NZ Wheeler says current deficit is too high, quantitative easing doesn’t deserve serious thought and is a sign of desperation.
- U.K.’s Cameron says EU spending rises “ludicrous”.
- Japan’s opposition party leader Abe says beating deflation, correcting yen strength are most pressing issues for economic policy.
- Juncker says Europe’s fundamentals better than U.S. and Japan. Greece vote will be yes. Says usually easier to work with U.S. President on 2nd term.
The projected re-election of President Obama caused a sharp sell-off of the dollar across the board. Gold rebounded reaching highs over $1725.00 and U.S. treasury yields got hit. When the dust settles we still have our fiscal cliff to deal with, Greece has there problems, Spain still doesn’t know what to do, and we have another storm heading our way.
EUR/USD after stops below 1.2800 were triggered, found support at 1.2780 in quiet conditions as the market waited on election results. After sentiment turned towards an Obama victory EUR/USD exploded on the upside taking out resistance levels at 1.2835/40 and 1.2750. Good offers at 1.2865/70 stalled the rally for now.
USD/JPY Drfted lower from 80.35/40 , slowly at first but then quickly ran large stops below 80.10 and through to lows of 79.80. It now seems to be comfortably consolidating around 80.10.
AUD/USD started the session at 1.0430/35 and slowly tested lower reach good support at 1.0400/05. The election induced rally saw previous resistance at 1.0450 breached. Some resistance up at 1.0470/75 may contain the rally for the time being.
As Pete just stated “thankfully it’s all over”…
Enjoy the rest of your day.
