After many days of the US currency strengthening, the time for a correction has come. Currently, it is not very pronounced – despite positive data from Europe, good results from the US have significantly dampened this move. The US elections are approaching, and there is no clear favorite yet.
European Economic Situation
Better industry data from Europe has emerged yesterday. “Better”, however, does not necessarily mean good – although the number of malcontents decreases, most people still look at the future with a negative attitude. Surveys for the service sector performed worse, but fortunately, this sector is dominated by optimists. The improvement in industry is due to Germany, which despite the mentioned rise is still one of the lowest in the entire eurozone. Markets regard the industrial index as more important than the service one, which is why the reaction was a strengthening of the euro. The positive impact of the improvement in industry was much more significant than the deterioration in services.
Data from the USA
In the afternoon, we saw data from the USA. This was objectively a solid set of readings. The indices for industry and services exceeded expectations, albeit slightly – by 0.3 points. If we add to this significantly lower-than-forecast data on the number of jobless claims and an increase in the number of new homes sold, we have a very strong set of data – one that should lead to a strengthening of the dollar. Meanwhile, the data landed on a market that was undergoing a correction after many days of strengthening the US currency. Investors decided that this was the right moment and continued the correctional move, ignoring the very good readings.
US Elections
The US elections will take place in one and a half weeks, and there is still no definitive candidate. The confusion related to this is quite large, although national polls do give Kamala Harris a lead. However, the electoral system in the USA does not mean that the candidate with the most votes wins the election. The key is to get the most electoral votes, distributed across individual states. That’s why the campaign takes place mainly in those places where the result is balanced, and strongholds are almost forgotten. Interestingly, there are betting polls appearing, considered by some analysts to be very reliable. They offer much less for Trump’s victory, which shows that he may indeed have an advantage. A very exciting race finish is anticipated.
Maciej Przygórzewski – Main Analyst at InternetowyKantor.pl
Source: https://managerplus.pl/silne-dane-z-usa-i-lepsze-wyniki-przemyslu-w-europie-napedzaja-rynki-przed-wyborami-41997
