Trade24 Daily Review 31/10

 It looks like the storm that hit the east coast paralyzed not only life there, but also FX trading. The market is barely moving.

The move that we did see was in the JPY. Not that it was big, but relatively to other currencies it is worth noting. The BOJ eased its monetary policy on Monday, but not as aggressively as expected (hoped) by market participants. The bank added 11 trillion yen (138 billion dollars) to the asset buying program. According to the reaction in the market, the participants expected for a larger sum. The yen strengthened although the BOJ lowered the inflation and growth outlook. Strategists say that the 80.38 Friday high should now serve as resistance for the USD/JPY.

Other pieces of news: -Spanish prime minister said he would only seek financial aid when it is in the interests of Spain. Also in Spain, the GDP contracted by 0.3% in the third quarter of 2012. The data was better than the expected 0.4% drop.

–German unemployment rose by 20,000 people, which is double the expected figure. The unemployment rate remained at 6.9%. The figures show that the German economy is also suffering from the consequences of the debt crisis.

In the US the elections are nearing. The date was set: on the 6/11 Americans will decide whether they want Obama or Romney as their leader. Possible impact on FX markets: Romney criticized Bernanke for overly easy monetary policy. Too many dollars were printed! Many economists even claim that the excess liquidity will not increase growth in the US. Romney said he would not support extension of Bernanke’s term as Fed’s chairman. Therefore, the greenback may strengthen significantly, should Romney be elected.

Note that strategists said it was too early to tell what impact the destruction caused by Sandy might have on currency markets.

Check up the latest news here.