Today the new CEO of Americorp is to be announced. Either the incumbent Barack Obama or Republican candidate Mitt Romney will be elected the most powerful man in the world, as president of the United States of America.
Yesterday in the prelude to America taking to the polls, investors flooded into the dollar as they adopted safety. The greenback rose sharply against many of its counterparts in early trading before consolidating its gains later in the day.
The riskier euro, hampered by problems in Greece, contrastingly performed badly throughout the day. As Samaras’ split government gear up for a vote on Wednesday, there is a lot of concern that no agreement will be reached, plunging the economy into further uncertainty.
With more austerity a desideratum for a third tranche of bailout funds, the coalition government is divided. The split saw the euro lose ground against many of its peers and should this trend continue the weakness may as well.
The pound, one of the few currencies not to capitalise on euro weakness, remained very range bound against the shared currency. Poor services PMI data in the UK dampened the previously positive outlook and according to the press, the sombre sentiment will continue. Manufacturing production released today will give the economy a chance to respond.
Today’s Key Announcement:
- 03.30am – AUD – Cash Rate: kept at 3.25% causing AUD strength
- 08.15am – EUR – Spanish Services PMI: improved contraction at 41.2
- 08.45am – EUR – Italian Services PMI: expected at 44.5
- 09.30am – GBP – Manufacturing Production m/m: expected to return to growth at 0.3%
- Tentative – GBP – 10y Bond Auction
- 11.00am – EUR – German Factory Orders: edging closer towards growth at -0.3%
- All Day – USD – Presidential Election
- All Day – USD – Congressional Election
See previous Daily Market Reports