Obama re-elected as US President
Barack Obama's second four year term in the White House is a reality, with semi-official confirmations given just minutes after 4GMT when most media outlets, including NBC, CBS, SKY,AP, Bloomberg, projected Obama's victory in Ohio, a key state for Obama in order to guarantee another second four year mandate. Mel Know, Editor at FXstreet.com, reports: "there were people somewhat surprised of the early confirmation of victory, but Obama has been picking off key swing states one by one. With 73% of the vote in, Ohio is projected to go to the president – no republican has ever won the presidency without winning Ohio. The president has also won in Wisconsin and Pennsylvania, leaving Romney required to win all three battleground states of Ohio, Florida and Virginia, where the race is too close to call. But the president has already reached the magical 270 Electoral College mark. Game over."
The USD was sold-off aggressively as soon as the news of an Obama win came in, with markets pricing in an extended term from the president that has brought the US debt to GDP to uncharted territories by enjoying at the helm of the Fed ultra-dovish Federal Reserve Chairman Ben Bernanke and his quest for QE to infinity.According to John J Hardy, Head of FX Strategy at Saxo Bank, the Obama victory, "is more risk positive, USD negative as immediate reaction, but any further reaction in this direction could quickly fade as uncertainty over fiscal cliff settles, which would be USD positive and risk negative." - FXstreet.com
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UPCOMING EVENTS :
2012-11-07 08:15 GMT Switzerland. Consumer Price Index
2012-11-07 10:00 GMT European Monetary Union. Retail Sales
2012-11-07 15:30 GMT United States. EIA Crude Oil Stocks change
2012-11-07 21:45 GMT New Zealand. Unemployment Rate
FOREX NEWS :
2012-11-07 05:34 GMT GBP/USD advances on projected Obama victory
2012-11-07 04:46 GMT AUD/USD prints fresh 5-week highs above 1.0450
2012-11-07 04:32 GMT EUR/USD attacking 1.2880; Obama edges closer to victory
2012-11-07 03:37 GMT USD/JPY slides as election results flow in
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EURUSD
HIGH 1.28748 LOW 1.27833 BID 1.28626 ASK 1.28632 CHANGE 0.39% TIME 07: 56 : 59
OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : High
MARKET ANALYSIS - Intraday Analysis
Long direction: EURUSD gained momentum on the positive side after the Obama become re-elected US President. Break out of our resistance level at 1.2875 (R1) is required to enable route towards to next suggested targets at 1.2896 (R2) and 1.2917 (R3).Short direction: Possibility of pull back is seen below the support at 1.2842 (S1). Loss here might take the pair towards to eventual targets, located at 1.2821 (S2) and 1.2799 (S3) in potential.
Resistance Levels: 1.2875, 1.2896, 1.2917
Support Levels: 1.2842, 1.2821, 1.2799
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GBPUSD
HIGH 1.60363 LOW 1.59682 BID 1.60338 ASK 1.60345 CHANGE 0.23% TIME 07: 57: 00
OUTLOOK SUMMARY : Up
TREND CONDITION : Upward penetration
TRADERS SENTIMENT : Bullish
IMPLIED VOLATILITY : High
Long direction: Intraday market sentiment is clearly Bullish. Protective measures for the upside development is seen at 1.6040 (R1). Break here would suggest next intraday targets at 1.6054 (R2) and 1.6067 (R3). Short direction: Our targets at 1.6005 (S2) and 1.5991 (S3) might be exposed if the downside extension below the support level at 1.6020(S1) occur later on today.
Resistance Levels: 1.6040, 1.6054, 1.6067
Support Levels: 1.6020, 1.6005, 1.5991
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USDJPY
HIGH 80.413 LOW 79.811 BID 80.112 ASK 80.116 CHANGE -0.3% TIME 07: 57: 02
OUTLOOK SUMMARY : Down
TREND CONDITION : Downward penetration
TRADERS SENTIMENT : Bearish
IMPLIED VOLATILITY : High
Long direction: Possibility to change market sentiment to positive is seen above the 20 SMA, we placed our next resistance level at 80.21 (R1). Break here is required to turn in focus higher target at 80.31 (R2) and any further increase would then be targeting to 80.40 (R3). Short direction: Technically, further market decline is more likely scenario for today while both moving averages are pointing down. Decrease below the next support level at 79.96 (S1) might enable bearish forces, targeting 79.87 (S2) and 79.78 (S3) in potential.
Resistance Levels: 80.21, 80.31, 80.40
Support Levels: 79.96, 79.87, 79.78
Source: FX Central Clearing Ltd,( Automatic forex trading | Learning Forex Trading | ECN Forex Trading Signal | FXCC )