Obama victory to impact FX, commodities most: CMC

CMC Markets tips Obama victory to have the greatest impact on currency and commodity markets. “An Obama victory leaves the way open for near-term weakness in the US dollar and consequently stronger commodity markets. Precious metals in particular may benefit from this scenario and it appears markets are now positioning for an Obama victory.”

The Obama victory makes it highly likely that a like-minded Fed Governor will replace Fed Chairman Bernanke when his term expires in 2014 which entails continued expansionary monetary policy if required, a potentially USD bearish/gold bullish scenario, it says.

“Concerns over resolution of the fiscal cliff may also be bearish for the US Dollar. In the near term, these concerns are likely to be heightened if Obama is returned as President but the Republicans retain control of Congress.”