FXstreet.com (Barcelona) - Romney has prioritized the achievement of energy independence by 2020 “on this continent” (implying the US, Canada and Mexico taken together). Indeed, one of his few specific commitments is the approval of the remainder of the Keystone XL pipeline between Canada and the US. According to Julian Jessop, Head of Commodities Research at Capital Economics, “This might be expected to add to the downward pressures on oil prices and the traditional US benchmark WTI in particular. However, Obama has only delayed rather than blocked the completion of Keystone.” For most of the past year a higher Obama rating has been associated with a widening of the Brent-WTI spread. There are differences in emphasis in energy policy, including on gas and coal, but these are unlikely to change the big picture.
Romney has also touted more aggressive foreign and trade policies. However, he was noticeably more conciliatory on the Middle East in yesterday’s presidential debate, while Obama has hardly been soft in the sanctions taken against Iran. Romney has said he will declare China a “currency manipulator”, though it could be years before this results in any policy action. “Both candidates have attacked China extensively during the campaign and the risks of a trade war may not be that much higher under Romney.” Jessop states.
Finally, Romney has been critical of the launch of QE3. There has even been some talk that he would encourage Fed Chairman Bernanke to quit before his term ends on 31 January 2014. “Speculation that a more conservative figure will take over at the Fed might undermine the prices of commodities, as well as equities and mortgage securities, while boosting the dollar.” she warns.
Romney has also touted more aggressive foreign and trade policies. However, he was noticeably more conciliatory on the Middle East in yesterday’s presidential debate, while Obama has hardly been soft in the sanctions taken against Iran. Romney has said he will declare China a “currency manipulator”, though it could be years before this results in any policy action. “Both candidates have attacked China extensively during the campaign and the risks of a trade war may not be that much higher under Romney.” Jessop states.
Finally, Romney has been critical of the launch of QE3. There has even been some talk that he would encourage Fed Chairman Bernanke to quit before his term ends on 31 January 2014. “Speculation that a more conservative figure will take over at the Fed might undermine the prices of commodities, as well as equities and mortgage securities, while boosting the dollar.” she warns.
