USD to vote Romney

Data/Event Risks

  • USD: Latest polls suggest that President Obama will be re-elected today. Results are expected early Wednesday morning (London time).
  • EUR: Services PMI data out today from Europe’s economic heavyweights. Weak outcomes relative to expectation will perpetuate the contrast between an improving America and a faltering Europe, in turn weighing on the euro.
  • GBP: Industrial production at 09:30, followed by NIESR GDP estimate at 15:00. Recent growth news out of UK has been mildly encouraging – expect GBP to further outperform euro should today’s growth news provide an upside surprise.

Idea of the Day

Traders need to be fleet-footed today. If the services PMI data for Europe is weak, we could well see the euro head lower. However, we could then see some euro shorts cover ahead of a likely Obama victory; the latter would probably weigh on the dollar.

Latest FX News

  • USD: The dollar made further forward progress yesterday against most majors, principally on fresh euro fears. Dollar bulls need to be careful – could see some profit-taking ahead of election result.
  • EUR: Renewed Spain and Greece concerns hurt the single currency on Monday, but follow-through selling once the euro broke the critical 1.28 level was largely absent. IMF warnings on France and Denmark also weighed on the euro.
  • JPY: Partial recovery for the yen yesterday, but looks to be temporary. Yen weakness could well become entrenched before too long – the economy needs a weaker currency.
  • AUD: Dollar gains failed to hurt the Aussie at all on Monday, further confirmation that the AUD is still in demand. RBA decision to leave rates unchanged provided AUD with a fresh boost overnight. Aussie remains one of the most favoured major currencies.

FxPro - Forex Broker

FxPro - Forex Broker

Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss.