With a short-list of reports prior to the US presidential election; the tendency of most market participants would be fixated on the last legs of the campaign strategy & the end-results of the elections. Without going further towards it, the market highlight for the week would be from the RBA rate decision, the ISM non-manufacturing composite figures and the Producers Price Index in the EU zone which would provide the volatility of price action prior to the election proper.
However, the main concerns would be the actual market sentiments moving ahead from the previous week US Dollar reaction supported by the Non-Farms Payrolls figures. Whether the USD rally would sustain while concurrently being supported with the declining prices in both the commodity markets of the precious metal and oil. Not withstanding, the loss of steam in the S&P500 from the declining closing prices from last Friday's move. All these put together, seems to be felt among investors building & shifting investment flows from the Euro and heading towards the US Dollar base-economic recovery by the end of the last quarter of the year. No such confirmation can be set as speculative investments are formed after USD short-covering and market shift can likewise be evidenced with actual price movement in favor of the US Dollar.
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