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Hello, it’s Wednesday, November 07, 2012, and I’m Martin Smith with the daily outlook
from UFX Markets.
The US Dollar fell versus most majors as investors began earlier today to price in a likely win
for President Barack Obama, who is seen to favor of keeping interest rates low, in a
close-fought U.S. election. Wall Street finished higher. The Dow Jones gained by 1.02% NASDAQ
by 0.41% and S&P by 0.72%.
Gold (XAU) rose the most in seven weeks tracking gains in equities and commodities, on speculation
that the U.S. will take additional measures to spur economic growth, closing at $1,715.
Crude Oil rose most in a month on forecasts that U.S. gasoline supplies dropped after
Hurricane Sandy forced the shutdown of East Coast refineries, closing at 88.40$ a barrel.
The Euro gained against the dollar underpinned by the rally in stocks as investors await
the results of the US presidential election. The EUR/USD will remain bearish as long as
it is trading below the 1.2900 resistance level. Today, Greek Gov. Debt Crisis Vote
is expected to take a place and Retail Sales are expected to stay unchanged vs. 0.10%.
The Cable strengthened against the dollar as investors sentiment improved. The GBP/USD
is bullish above the 1.5970 level and the pair may again test its strong resistance
level of 1.6080. But if the pair fails to break this level, it may retreat to the 1.5940
level once again. No economic data is expected today.
The Canadian Dollar rose gained against its U.S. counterpart as rising U.S. stocks and
raw materials boosted appetite for higher-risk assets. Technically, USD/CAD will remain bearish
as long as it is trading below the 0.9940 resistance level, a trend fully supported
by the moving average tool. No economic data is expected today.