Forex - Dollar Selling on US Election Result May Be Fleeting

Posted by Forexsq 525 days ago (http://finance.yahoo.com)
img forexsq - The US Dollar weakened in overnight trade as risk appetite swelled across financial markets – weakening forex traders’ demand for the go-to haven currency – in the aftermath of the US general election. The ballot handed victory to President Barack Obama while challenger Governor Mitt Romney conceded. As we argued yesterday, any outcome that produced a clear winner was likely to be greeted by investors hopeful for a swift re-orientation toward resolving the looming “fiscal cliff” fiasco.

Looking ahead, a quiet economic calendar is likely to keep the election front and center as financial markets around the world take their opportunity to respond to the results. S&P 500 stock index futures have erased earlier losses ahead of the opening bell on Wall Street, suggesting the risk-on bias into the hours ahead. Investors’ chipper mood may not prove lasting however, opening the door for the greenback to mount a swift recovery.

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