USD Struggles in Wake of Midterm Elections

Wednesday, November 7, 2018

 

The CAD has had a bit of a rollercoaster morning opening up over half a cent but has now settled where we opened the week. New was limited to Ivey PMI which was an impressive beat coming in well ahead of the 50.9 forecast at 61.8. Fundamentals are scarce for the remainder of the week out of Canada.

 
The USD is struggling against most of the G10 currencies in the wake of yesterday’s midterm elections. The Democrats took the house while the Republicans held onto the Senate but the USD has struggled into the open. Crude Oil Inventories showed a build of 5.8M barrels compared with the expected build of 2.0M barrels.

 
The EUR is continuing to extend its recent rally and pushing towards the top end of its recent range. Risk aversion out of the USD is more than likely responsible for this move today with fundamentals adding even further support.

 
Equities are up across the board this morning: the Dow up 1.02%, the S&P up 1.29%, NASDAQ up 1.68% and the TSX up 0.25%. Crude Oil is down 1.37% this morning ($61.36) while Gold is also down 0.01% ($1,227.15).

 

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