The culmination of several months relentless campaigning arrives at its zero hour this week. American voters will take to the polls to decide who will lead the single most important economy in the world.
The November 6th elections naturally play a huge part in deciding the direction of the US economy, and as such investors will have a keen eye on proceedings. Obama still maintains a narrow lead, but that has depreciated in recent weeks. Whether the incumbent is elected for a second term or Romney, the Republican candidate, is chosen, their different stances towards the fiscal cliff, the Fed and tackling the US’ haunting deficit are likely to cause a move towards dollar strength in the meantime.
Europe faces as crucial week too, as the egg timer on Greece’s liquidity runs dangerously low. Greek Prime Minister Antonis Samaras warned that his nation does not have the capacity to make further cuts, a requirement that the troika demands before releasing any further tranches of funding.
Greece poses the threat of contagion to other teetering economies such as Spain and Italy. If the uncertainty continues, it is likely that there will be a knock-on effect to the euro, causing a drop against many of the safer currencies.
Today’s Key Announcements:
- 08.00am – EUR – Spanish Unemployment Change: much larger than expected at 128.2k
- 09.30am – EUR – Sentix Investor Confidence: expected at -20.7
- 09.30am – EUR – Services PMI: expected to show growth at 52
- 15.00pm – USD – ISM Non-Manufacturing PMI: expected at 54.6, slightly down from 55.1
See previous Daily Market Reports