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Euro in New York: Elections Have Consequences

Posted by Joseph Trevisani on Nov 5, 2014 4:55:00 PM

The euro opened at 1.2493 (8:30 am) in New York having fallen from the Asia high of 1.2567 to the European low of 1.2467 before daylight in the United States.

The Republican victory in yesterday's Senate election because apparent around midnight in the states and that contributed to the broad ascent in the dollar from that point. Weak euro zone retail sales for October, -1.3% vs -0.8% m/m and 0.6% vs 1.4% y/y, were just icing on the euro decline as the bulk of the fall had already taken place. 

Stronger than forecast ADP employment data 230,000 vs 220,000 at 8:15 am brought a dip to 1.2469 but pair recovered quickly to 1.2507. Trading gyrated between there and 1.2476 until services ISM at 10:00 am.  Though the composite number was slightly weaker than expected 57.1 vs 58.0 and many of the sub-indexes were also soft the euro took a quick drop to the days low at 1.2457. 

The dollar gave back some of its gains on news of a pipeline explosion in Saudi Arabia fomenting a rally to 1.2497 but this proved not to be a terrorist attack and action fell back to
1.2474 as markets await tomorrow's ECB meeting.

The euro closed at 1.2486



Chart: Bloomberg 

eur min nov 5 close


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