ZuluTrade Blog

President Barack Obama rolled to re-election...EURUSD range in Asia was so far 1.2783-1.2886..

Market View | Wednesday, November 7, 2012 2:49 AM GMT

 Good Morning,

 

- President Barack Obama rolled to re-election and a second term in the White House on Tuesday with a clear victory over Republican challenger Mitt Romney.

- The expected happen in US politics and in currency markets. Obama won and the USD declined, which is however probably the 'worst' outcome for market volatility in my view. EURUSD range in Asia was so far 1.2783-1.2886, USDJPY gave up yesterday's gains and dropped to 79.81, while EMG- and commodity currencies continued to outperform the USD. AUD high 1.0473, CAD low 0.9890.

-Stocks: Nikkei -0.03 %, Hang Seng +0.31 %, Shanghai Composite +0.04 %, Dow Jones +1.02 %, S+P500 +0.79 %

- Gold rose more than 2.5 % over the last 24 hours, high so far around 1727.50.

- Luxembourg’s Prime Minister Jean-Claude Juncker, who heads the group of euro-area finance ministers, speaks in Singapore. * U.S. fiscal cliff may draw attention away from Europe * Greece has no real alternative to austerity program * Greek vote on austerity “will be yes” * Euro-group meeting called for Nov. 12 * Limits to European solidarity haven’t been reached * Up to Spain to ask for assistance program if it needs one

- Greece's coalition government hopes to overcome its own divisions and defy protesters' fury at parliament's gates on Wednesday to push through an austerity package needed to secure an injection of aid and avert bankruptcy.

- Shinzo Abe, leader of Japan’s main opposition Liberal Democratic Party, says the Bank of Japan should continue monetary easing until inflation rises to 3%, Reuters reports, citing remarks made by Abe to a meeting of business executives today.

- Economics Minister Seiji Maehara said on Wednesday that Japan's economic situation requires powerful monetary easing, and that the Bank of Japan needs to keep the market informed of price adjustments in its fight against deflation. Japan must exit deflation as soon as possible, and the government and the central bank will work together to achieve that goal, Maehara told reporters at a news conference.

- Bank of Japan Governor Masaaki Shirakawa speaks in parliament. * Central bank will take appropriate policy measures to beat deflation

- New Zealand’s dollar may stay strong and there isn’t much that can be done because investors are attracted to growing economies, according to the nation’s central bank. “It’s hard at this point to see any factor that would lead to a major depreciation in the exchange rate in the short term,” Reserve Bank of New Zealand Governor Graeme Wheeler told parliament’s finance select committee today. He reiterated that cutting interest rates is unlikely to sustainably lower the local dollar.

- M+A: Various newspaper report of insurance companies may place bids for UK's Legal & General (names mentioned amongst the bidders are MetLife, Zurich Financial Services and Allianz), L&G share price 144.20p, market cap GBP 8.5 bln, bidding price range/share 225-250p/share.

 

21:00

US Consumer Credit Sep

11:00

EU issues Autumn Economic Forecasts

11:00

Eurozone Retail Sales Sep

12:00

Germany Industrial Production Sep

13:10

ECB Draghi

10:30

BOE Haldane

09:00

Switzerland Currency Reserves Oct

09:15

Switzerland CPI Oct

22:45

NZ Unemployment Rate Q3

22:45

NZ Q3 Employment Change

 (CET)

Have a good day

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