Latest News EUR/USD
Teh 8th of November in USA as yet and this is the day that cuold determine the short term trend for a variety of instruments and hence looked forward to eagerly by a lot of traders. Later on in the day, the US Presidential elections begin and some opinion polls still have the race as pretty close between Trump and Hillary and hence the markets are on edge. The traders and investors remember too well on what happened when they had assumed the result to be a bygone conclusion as had what happened with the Brexit vote. So, this time, they have chosen to take a wait and watch attitude and hence the volatility has been comparatively less yesterady and so far today.
Yesterday, as expected, the pair has a bearish day as the USD strengthened across the board on hopes of a clear victory for Hillary. The pair moved through 1.1050 and it sits at 1.1031 as of this writing. Expect some more volatility with a bearish bias as the day wears on and the elections approach. A victory for Hillary has already been priced in to an extent,into the markets and hence, this is what the markets expect and this is what will bring cheer to the markets. So, we can expect the USD to strengthen if the victory for her is confirmed as the results come in.
In the unlikely situation of a victory for Trump, the markets would be shocked and as this is something that is not priced in, we could expect a violent reaction from the markets with the USD weakening across the board in the short term. Looking ahead to today, there is no economic news scheduled to be released from the Euro region or the USA during the day and so the focus will be fully on the elections and the results that will start flowing in soon after the elections are over. Today and tomorrow promise to be highly volatile days and we advise our users to trade carefully with tight stop losses.