The U.S. Dollar is trading in less favorable ranges this morning following a tightly contested midterm election across America.
Democrats winning the House of Representatives and Republicans solidifying their Senate majority was the scenario most analysts saw coming and investors were prepared to see occur. While oversight, regulation, and fiscal questions will now surround the new wave of legislators, the economy and markets will be mostly concerned with trade, progress in wages, and troubles globally.
We believe that now the bombardment of political news will take a back seat in November, but we shall see if the President and newly empowered Democrats start talking infrastructure and more pertinent economic issues. It is clear that there is a heavy environment in Washington, but initial victory and concession speeches from both parties highlighted a call for unity.
With economic momentum unlike any other region of the world, the U.S. Dollar shall stay in a relatively good position to finish out a winner in 2018. Naturally, major currencies may be attempting a comeback, but gains may be subdued by their local shortcomings economically.
What to Watch Today…
- No major events scheduled for today.
The complete economic calendar can be found here.
The Euro rose, but may be volatile to a swing downward again as economic data keeps on disappointing for the Euro-zone. Retail Sales failed to expand at all in the month of September although a prior contraction reading for August was revised upward as a positive. The low expectation for 0.1% in September did not materialize. Gross domestic Product next week and inflationary figures will test the current “uptick” for the shared currency, which is slowly trying to make up 2.6% devaluation in October.
The Pound is up, but there is growing bearish sentiment as Prime Minister Theresa May prepares to show her cabinet her revamped proposals. We shall monitor throughout the day just what details are included that could change the EU’s minds as well as achieve a consensus in Parliament. May does have until November 21st, but domestically patience is growing thin and many are set on the government failing to have anything agreed upon by the deadline.