EUR/USD Drops as Obama Reelected

EUR/USD dropped, reaching the lowest level in almost two months, after Barack Obama was reelected as the US President. Such outcome has been considered dollar-positive by analysts and their view proved to be true so far. Market participants are concerned that the President will clash with the Congress about the way to avoid the fiscal cliff.
Crude oil inventories increased by 1.8 million barrels last week (matching forecasts exactly) and are above the upper limit of the average range for this time of year. Total motor gasoline inventories increased by 2.9 million barrels and are in the middle of the average range. (Event A on the chart.)
Consumer credit rose by $11.8 billion in September. The rate of growth was below the September $18.4 billion, but above the expected reading of $10.1 billion. (Event B on the chart.)
Yesterday, a report on ISM services PMI was released, showing a drop from 55.1% in September to 54.2% in October, while forecasts pointed at 54.6% as a possible value. (Not shown on the chart.)


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