Today is all about the US Presidential elections. After one year of campaigning and a staggering $6 billion in campaign costs for presidential candidates and contestants for the US Senate and House of Representatives, votes will be tallied and we will see who will lead the most powerful country in the world for the next four years.
US Presidential Elections
Risk appetite is improving this morning and the US dollar is trading broadly weaker against its peers; however, markets remain trading within a very tight range. An Obama win in the election initially appears USD negative, while a Romney win would be USD positive; the results of the battles for Senate remain critical in the medium term as tensions over the Fed and fiscal cliff will be serious if the President and Senate are at odds.
The Aussie dollar is outperforming today after the central bank held interest rates firm at 3.25% while many analysts saw a 0.25% interest rate cut in the cards. The Reserve Bank of Australia also announced a more upbeat outlook on global growth, particularly with their largest customer, China.
North American equity futures are pointing towards a positive open, up 0.35%. Crude Oil has regained 1.2%, trading up to $86.65 while Gold is up 0.5% to $1,690/oz. The Canadian dollar is trading 30 basis points higher as risk appetite is on the rise.