Election day in the USA [Video]

Today's Highlights

• Election day in the USA

• Chinese exports dive

• German manufacturing slows

 

FX Market Overview

China’s exports plunged in September by 7.3% and capital outflows dropped China’s foreign exchange reserves to the lowest level since January. That produced concerns that China will become more protective of its reserves and the Yuan weakened to nearly six year lows on the news. Perversely, that weakness will help exports, so there is some natural balance to these things.

US stock markets rallied late yesterday after polls showed Hilary Clinton in the lead, as America decides on its next President. Out of 300,000,000 people, these two are the cream of the crop, the brightest and most eligible candidates and there is no controversy in that statement at all…

By 5am UK time tomorrow, we will know the outcome, or we will know that it is too tight to call and Donald Trump will get a chance to decide whether to concede defeat. More importantly, the US Dollar could well be mahooosiveley volatile. It’s a technical term, but I am sure you get the meaning! As mentioned in yesterday’s daily report, there are tools available to you that will manage your risk and offer opportunities to benefit from spikes. Call in and any one of our team will be happy to explain and help you with this.

We saw this morning’s data confirm a slowdown in German industrial production. The Euro was unmoved, but it is a worry if the largest economy in the Eurozone is struggling with exports. The strength of the Euro is no help in this regard, but slower demand in overseas markets will have an effect as well.

The UK government is convinced it will win an appeal against the recent High Court ruling over Parliament having to vote on the triggering of Article 50. EU exit minister, David Davis, revealed his conviction that it would happen by April 2017. Sterling was unmoved, but maintained its recently recovered level of strength. This morning’s UK industrial and manufacturing performance data will be crucial to the direction of the Pound and this afternoon’s National Institute for Economic and Social Research (NIESR) estimate of economic growth in October could boost Sterling if the numbers are as strong as the forecasts. However, shock waves from the US election will also have an impact.

And, while they are cuter than a cute thing, Australian authorities are urging people not to try to smuggle koalas out of the country. A woman was arrested at Brisbane airport after she declared a baby koala in her backpack. She said she found it and had been caring for it. The poor little critter is being cared for by experts, as he was found to be dehydrated. No one has explained where the woman was planning to get all the eucalyptus leaves from when she got back home.