Risk rallies as Obama wins a fresh four year term

Risk has shown a positive tone following Obama winning a second term in the White House, with the US dollar trading negatively as the market takes the result being that the Federal Reserve will remain dovish.

The political make up of Washington DC remains the same, with the Democrats keeping a narrow majority in Senate and the Republicans holding on to the House. President Obama is expected as early as this week to push the House to resolve the fiscal cliff ahead of the Christmas holiday.

The main focus today will be the US election outcome and its implications, however, we also have the Greek parliamentary vote on austerity and reform measures, with passage by a narrow majority still the most likely outcome. The result will probably not be known until very late this evening, with the proposed document to be debated being some 238 pages long.

EUR/USD

Supports 1.2840 – 1.2758 – 1.2740| Resistance 1.2880 – 1.2910 – 1.2960

USD/JPY

Supports 79.80 – 79.65 – 79.25 | Resistance 80.70 – 81.00 – 81.20

GBP/USD

Supports 1.5970 – 1.5950 | Resistance 1.6045 – 1.6090 – 1.6140

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