The U.S. dollar was seen trading volatile on the day as the results poured in through the early trading hours of the European session. With the Democrats claiming a majority in the U.S. House while the Republicans are retaining a majority in the Senate, speculation is rife on how the U.S. policies will be implemented going forward.
Economic data on the day covered the German industrial production which beat estimates of a flat print to rise 0.2% on the month. Previous month’s data was revised higher to show a 0.1% increase.
The NY trading session saw Canada’s Ivey PMI rising to 61.8 on the index. This beat estimates of 50.9 and advanced from 50.4 from the month before.
The overnight trading session saw the Reserve Bank of New Zealand holding its monetary policy meeting. The central bank kept interest rates unchanged at 1.75% and retained its forward guidance.
Looking ahead, the economic calendar for the day will see the release of the German and French trade balance numbers. The economic data from the Eurozone is relatively quiet for the most part today.
The NY trading session will see Canada’s housing starts report coming out. Data is expected to show that housing starts rose 195k on the month following a print of 189k the month before. Later in the evening, the FOMC will be releasing its monetary policy statement. The Fed funds rate is forecast to remain unchanged at 2.0% – 2.25%
