Top Forex Stories November 7th

The biggest story yesterday was end of the long road that ended with the President Obama reelection victory in the US election. The stock market retreated today as the results point to a gridlocked congress ahead of the Fiscal Cliff deadline. The expectation is that there will be an extension of quantitative easing and tax hikes instead of the promised Republican stimulus.

Europe had a big part to play as the European Parliament is in session and Angela Merkel has made very strong statements about what is needed to save the EUR. Greece continues to struggle with the austerity package and today people protested in the streets.

Tomorrow marks another landmark in power transition as the 18th Communist Party Congress gets underway in China. At this point its is merely a formality that should end with the announcement of Xi Jinping replacing Hu Jintao as president of China.

United States

• Who will take over the Treasury? – Nov. 7, 2012
• Obama win may ease China tension – Economy
• U.S. Warned by Fitch on Fiscal Cliff; Moody’s Stands Pat on View – Businessweek

Europe

• A Foreign Policy Roadmap: What Germany Expects from Obama – SPIEGEL ONLINE
• BBC News – Eurozone growth forecast cut sharply by European Commission
• Draghi says ECB plan allows for unlimited bond buys | Reuters
• The Second Most Important Vote This Week — European Business News – CNBC
• Merkel calls for eurozone countries to surrender key tax-and-spend powers | Business | guardian.co.uk

China

• Economy central for China’s new leadership – Nov. 4, 2012
• The Key Players in China’s Power Transition: Inside the ‘Gang of Seven’ – Rachel Lu – The Atlantic

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