US Presidential Election’s impact on the Forex Market
Obama is now “in charge” again after the United States Presidential Election and this had an serious impact on the Forex Market.
USA has more than 16 trillion dollars in debt and the re-election of Obama gave a new hope for some especially because unemployment was recently at 7.8% (the lowest in the last 4 years) and consumption is high.
In addition to this, Greece is not making any progress so we’ve seen USD rising against the Euro and there are bug chances that the US Dollar will continue to get stronger against the Ero in the next couple of months.
Japan’s economy is not doing well and specialists forecast a 0.9% contraction however USD/JPY is showing a a bearish sign (through a breakdown) at this moment so one must remain neutral regarding the evolution of this currency pair.
The so called US fiscal cliff will have a major impact on a global level so this is now a big concern for the entire world.
Obama said that he’s willing to compromise but also said “We have to combine spending cuts with revenue. And that means asking the wealthiest Americans to pay a little more in taxes.” so no one knows how will he get-along with republicans in this matter.
GBP/USD was bullish after Obama’s victory however on Thursday there will be a policy meeting of the Bank of England where a new interest rate will be decided so until then the GBP/USD will have an evolution based on a so called market sentiment.
Overall, we can say that Obama’s re-election had a positive impacts on the Forex Market.