The currency market reacted with intense movements to the reelection of President Obama in the United States.
Speculation that Obama in his new mandate will continue its policy of printing dollars is contradicted by the low acceptance that the agent has in the markets.
As concerns currencies, the euro fell very strong after reaching 1.2875 in the early European session. This could lead to the single currency fall below 1.27 during the course of the week.
The euro may break the key support at 1.2745 up from 23 in June and 38.2% the last bullish movement on the daily chart. Meanwhile, the pound is dropping, as well the Canadian dollar and Australian dollar. The latter, however, still retains a significant upward trend, given the significant increase that was presented on Tuesday morning.
The sterling, with nuances, resembles the euro, and will cost you hold above 1.5930 in the next few hours, if the rate does not change quickly.
The Canadian dollar, meanwhile, could reach parity against the dollar and the Swiss franc, which has just reached its lowest since September 7, has his next target 0.9490.
With oil inventories at 10:30 Eastern, as only data of importance, end markets to digest Obama's victory, a victory that, at least, to be shared with the man who saved the United States from entering into a deep depression: Ben Bernanke.
The material has been provided by Instaforex Company - instaforex.com
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