Election today in USA

Yesterday’s markets saw the pound lose a little ground against both the dollar and the euro, though ranges were slim and it was certainly nothing like the recent volatility we have seen. After hitting a 1 month high against the euro, weaker than expected UK data releases saw the pound fall away though with concern surrounding Greece and equally poor eurozone data losses were limited.

The poor PMI data added further fuel to the fire for the argument of the necessity of further QE by the BoE later this week. Many analysts had changed their predictions, following the recent run of good UK data – in particular the much better than expected GDP data, and are now anticipating the MPC to agree on holding off on QE but this weaker than expected data may have thrown another spanner in the works.

The US election seems to be on every channel every time you turn the TV on and it’s not surprising with many feeling the Presidency of the US is the most important job in the world so let’s hope the citizens of America make the right choice ! With the race to the White House being billed as the closest in election history we are seeing investors pile into the dollar (seen as a safe haven) as uncertainty over who will win continues. We could see some big cable movements over the coming days and it is well worth discussing all your dollar options with your account manager here at Currency Index. For the record I am backing Obama but as a very proud born and bred British Citizen I have no say but for the sake of us all lets hope our friends across the pond make the right choice.