Investors are dumping US dollars ahead of next Tuesday’s US Presidential election. This will be a historic event for the country, the world and the financial markets. The stakes are high and the outcome is uncertain. There’s a very good chance that the next President of the United States won’t be decided on November 3rd which explains wy investors are compelled to reduce exposure and cut positions ahead of the election especially after record breaking gains in stocks this year.
A flurry of US economic reports were released today – none of which lent much support to the greenback. USD/JPY was on a one way decline in the NY session, falling within a few pips of its 1 month low. Durable goods orders rose strongly in the month of October and house prices increased. Unlike the University of Michigan sentiment index which hit a 6 month high, the Conference Board reported a decline in sentiment in the month of October. The biggest news today was the confirmation of Judge Amy Coney Barrett to the Supreme Court which could reshape the court for the next decade and play a major role in how mail in ballots are counted. Republicans are pushing for a reconsideration of the Pennsylvania mail in voting case which is important for the markets because it could affect election results. Read more…..
Chart of the Day
Oil giant Saudi Aramco has seen a massive 25 percent drop in profits and warns of a ‘challenging’ few months ahead. Among its concerns: production cuts. Saudi Arabia announced on Monday it would deepen cuts by a further 1 million barrels per day… as global demand continues to weaken. It’s a blow for the company which celebrated the world’s biggest ever stock market listing just a few months ago.