The end of an eventful week. The highlight of the week was undoubtedly the US election; with it came the realisation that, although all looks great in the US, it isn’t a bed of roses.
The US faces an incredible fiscal cliff, with debt and deficit spiralling out of control. Markets were sold comprehensively, as investors began to doubt if the US economy could overcome this challenge, with gold gaining on fair value. The USD held strong, which was a little surprising but perhaps does show how important a role the FOMC has played with stimulus.
The JPY should kick off the trading week on Monday, with JPY GDP out overnight on Sunday. It should be a good week of data, with enough opportunity to make up for slow trading days around the election and hurricane Sandy.
Enjoy the weekend! (JKM)