Daily Morning Report 07/11/2012 | Forex Trading Analysis

The EUR/USD rallied back above the 1.2800 as the market trades back and forth in a extensive range today ahead of the US Presidential election results due and the Greek austerity bill that goes for a vote at Parliament. 

The British pound strengthened on early Wednesday and rose to fresh highs above 1.6000 versus the dollar as investors sentiment improved. The National Institute of Economic and Social Research in the UK released the October estimate of the country's GDP taking in account the last three months, pointing at 0.5% growth. The September figure was revised higher, from 0.8% to 1.0%.

Obama wining the overall election for US presidency has become a bit clearer as he's currently taking over the lead. The Obama re-election as US President means that Bernanke would stay as visible head for the FED, and markets are interpreting this is good news for bonds and gold, as the FED will continue the easing programs, and inflation will keep afloat.

Daily Afternoon Report 06/11/2012 | Forex Trading Analysis

The U.S. dollar was trading in a narrow range against most of the other major currencies on Tuesday, as investors remained cautious ahead of the start of voting in the U.S. presidential elections, with opinion polls pointing to a tight race between incumbent President Barack Obama and Republican contender Mitt Romney.

The single currency remained under pressure ahead of Wednesday’s parliamentary vote in Greece on new austerity measures needed for Athens to secure its next instalment of international aid.

In the U.K., official data showed that manufacturing production inched up by 0.1% in September, missing expectations for a 0.3% increase, while industrial production declined 1.7%, compared to expectations for a 0.6% drop. Furthermore, hopes the economy is on the road to recovery have been dampened by figures showing retail sales stalled last month and growth in Britain's services sector almost ground to a standstill.

The weak data reinforced concerns that the U.K. economic recovery will falter towards the end of the year, after data last month showed that the economy exited a recession in the third quarter.

Earlier Tuesday, German factory orders fell the most in a year in September as Europe’s sovereign debt crisis and slowing economic growth prompted companies to reduce investment. Orders, adjusted for seasonal swings and inflation, slumped 3.3 percent from August, when they dropped a revised 0.8 percent, the Economy Ministry in Berlin said today. That’s the second straight drop and the biggest since September 2011.

Daily Morning Report 06/11/2012

The United Kingdom services activity increased at the slowest pace since a temporary decline in activity nearly two years ago according to forex news.

The UK economy expanded 1.0% in the third quarter following three quarters of decline. Employment in the services industry decreased for the second month in a row in October. Expansion of new orders slowed a bit during the month, but still remained solid.

The United States will go to the polls today in the big Election Day between two big contenders. Barack Obama leads with a small difference, and Mitt Romney, who three months ago had no chance to victory. Market is trading in coma right now waiting for results. The non-manufacturing PMI released by ISM fell from 55.1 to 54.2 in October, declining more than expected.

The Australian dollar jumped more than half a cent after the RBA announced it would leave official interest rates unchanged at 3.25 per cent. Despite the RBA didn't cut today, the monetary statement still retains a mild dovish rhetoric, suggesting that the easing campaign is not yet over.