U.S. Session Forex Recap – Nov. 8, 2016

  • U.S. labor market conditions index improved from -0.1 to +0.7
  • U.S. consumer credit fell from $26.8 billion to $19.3 billion
  • U.K. BRC retail sales monitor up 1.7%, 0.4% previous
  • Private polls show slight lead for Clinton
  • SNB: Ready to intervene in currency market if necessary

All eyes and ears are on the U.S. elections this week, allowing the Greenback to advance despite the lack of top-tier data.

Major Events:

U.S. election polls favor Clinton – It looks like the Democratic nominee is holding on to her lead in the polls by the skin of her teeth, at least according to the latest round of surveys. CBS has Clinton at 45% to Trump’s 41% while ABC/Washington Post has her ahead by 47% to 43%. Real Clear Politics, which takes the average of most state and national polls, has Clinton at 46.8% and Trump at 44.3%.

Wall Street is keeping its hopes up for a Clinton victory, with the Dow 30 index up 371.32 points to 18,259.60 (+2.08%) and the S&P 500 index up 46.34 points to 2,131.52 (+2.22%). If you’re planning on trading this event or keeping your positions open then, make sure you read Forex Gump’s article on election-related market tendencies.

SNB intervention threats – Investors aren’t the only ones keeping close tabs on the U.S. elections, as central bank officials from the SNB seem to be gearing up for the potential outcomes. After all, a flight to safety could yield a sharp rally for the Swiss franc, something that policymakers are keen to avoid.

According to SNB official Maechler in a TV interview, the Swiss central bank is ready to intervene in the forex market if necessary after the U.S. elections, as they did after the Brexit decision. She noted that they have actually been less aggressive recently in order to preserve ammunition for when they might need it most.

Major Market Movers:

USD – Thanks to Clinton’s lead in the polls and the resulting rally in equities, the U.S. dollar was also able to rake in some gains but was no match to comdoll strength.

USD/JPY gapped up over the weekend and proceeded to climb to a high of 104.62, EUR/USD slid from 1.1069 to a low of 1.1029, and GBP/USD dropped from 1.2437 to a low of 1.2384. AUD/USD popped up from .7673 to a high of .7729, NZD/USD rallied from .7314 to .7348, and USD/CAD dropped from 1.3402 to 1.3366.

Watch Out For:

  • Tentative: Chinese trade balance (366B CNY expected, 278B CNY previous)
  • 5:00 am GMT: Japan’s leading indicators (100.5% expected, 100.9% previous)

See also:

London Session Recap

Asian Session Recap

Bonnie and Clyde, peanut butter and jelly, Kanye West and Kanye West. Some things just go well together.

In forex trading, you get better odds at securing pips when your fundamental analysis is complemented by technical analysis.

Head on to Big Pippin’s Daily Chart Art for some pip-locking technical setups!