Gold: Multi-Year Lows vs. The U.S. Dollar For CDN, GBP, Yen and Aussie
A Step Back
There was a lot of data overnight across the globe but really one headline: Republicans won. The impact on Markets: US Dollar higher, Stock Markets higher, Interest rates higher and Precious Metals are getting hammered. This citation from Zerohedge.com sums it up well:
Republicans took control of the Senate after gaining 7 senate seats and now control both the Senate and the House of Representatives. This result has been well-received by markets, given that it will help open the gateway to reforms that could not previously have been made as analysts suggest that President Obama will now attempt to work with the GOP in the build-up to the 2016 election. Thus global equity futures have surged higher, with the USD-index benefiting and USTs being dragged lower.
US Dollar was particularly strong against the Aussie, mostly due to the collapse of Precious Metal prices this morning and a weak HSBC China Composite PMI. Other currency pairs are also seeing multi year lows this morning versus the Dollar: CDN, GBP and the Yen for example.
In Store for Today
2 importants data today. First we get ADP Employment Change which should give us a glimpse of what to wait for with Friday’s Non-Farm Payrolls. Second, ISM Non-Manufacturing Composite. On a smaller scale Market US Composite PMI and a few Fed Speakers (Kocherlakota, Lacker, Rosengren). |
