Daily Market Review 8 of November
OVERVIEW

After Obama reelection the Dollar most likely will appreciate during the current month as analysts worldwide assume. Bloomberg statistics suggests that after the victory of a democratic candidate the American currency appreciated each time since 1988 and depreciated if a republican won. Historically presidents from democratic party created more jobs and the GDP grew faster than under republicans. Improvement on the labor market generates a strong economic growth and the increase of corporate profit. That’s why in the near future investors probably will be interested in the US Dollar. In 30 days following the election of democratic candidate in 1992, 1996 and 2008 the US Dollar appreciated by 1.4%, 2.2% and 1.6% respectively. The election of a republican candidate in 1988, 2000 and 2004 lead to the downgrade of American currency by 2.9%, 3.3% and 4.1%, respectively.

CURRENCIES

EUR/USD

Yesterday the Euro depreciated against the US Dollar from 1.2876 to 1.2735 with a slight return to 1.2760. The Euro lost all gained achievments during the day. The main factor here was the comment of the ECB leader Mario Draghi who said that the crisis in Europe started to affect the economy of Germany.



GBP/USD

Yesterday the Pound attempted to grow against the Dollar. But couldn’t get higher than 1.6041 and the prices dropped to 1.5954. Now everything depends on the power of Support at 1.5945 that might be lost any moment. The resistance is near 1.6140.