FUNDAMENTAL REVIEW 07.11.12

 

Obama's victory has caused a growth in optimism

 

The apparent victory of "the old president" Barack Obama had substantial support risk appetite of investors. This is primarily due to the fact that the uncertainty has disappeared, which hung over the markets for at least the last month, as well as important is the fact that Bernanke all running programs to stimulate the economy remain in force. This alignment will undoubtedly have a significant short-term impact on the market, which means the U.S. dollar, as we mentioned before, will remain under severe pressure.

 

But, despite the success of Obama's generally not a market after the euphoria remains an unsolved problem with fiscal policy. Waiting notorious tax break, if you can not agree with Obama by the U.S. Congress, where the saddle Republicans continue to have a negative impact on the markets.

 

President of the Federal Reserve Bank of San Francisco, John Williams said the Fed could expand the scope of asset purchases by more than $ 600 billion, thus expanding the third phase of quantitative. And this is a negative factor for the dollar.

 

And while the dollar in the foreign exchange market remains under pressure. The single currency in the Asian trading session got good support and against Obama's victory has the potential to continue to rise against the U.S. dollar.

 

It seems that today we will see the beginning of the presidential rally in the markets.

 

Statistics today:

Moscow time

12.00 Switzerland's currency reserves in October n / a; n / a; 429,5 billion

12.15 Switzerland Consumer Price Index in October n / a; 0,3% m / m, 0.3% y / y

14.00 Eurozone retail sales in September n / a; 0,0% m / m and 0.1% m / m

15.00 Germany Industrial production in September n / a; -0,4% m / m, -0.5% m / m