November 8th, 2019 - 3 Things That Happened This Week
November 8th 2019
1. Billionaires predict a significant market drop if a Democratic President was to be elected.
Paul Tudor Jones, Leon Cooperman, Steve Cohen and Stanley Druckenmiller (worth a combined $26.6Bn) believe that we could see anywhere from 10-25% market reversal depending on the candidate.They also said that another term for Trump would likely see a further 15% increase. This didn’t stop Paul Tudor Jones apparently coming out in support of Peter “Mayor Pete” Buttigieg.
2. CNY strengthens below 7 against the USD on trade agreement rumors.
Back in August the Chinese let their currency weaken above the key 7 level for the first time in 11 years. Trump implemented his Trade Tariffs and as a result the Chinese took swift action to manipulate their currency. However, negotiations seem to be going well, which in turn bolstered the CNY’s value across the board. How long we stay below the level 7 remains to be seen. The USD remains subdued against the vast majority of its peers. 6.70 is the next key level to watch with 6.6684 representing a 52 week low for the pair.
3. Lagarde completes first week as ECB president.
Christine Lagarde took over as ECB president following Mario Draghi’s departure and she was seen by many as an unconventional choice. Most notably because she really isn’t an economist by trade. That being said she comes with an impressive resume. Her political and diplomatic skillset coupled with her legal background could very much be the ingredients needed to complete the recipe for the Euro Zone reform. EUR currently 1% stronger against the USD but this is mainly because of USD weakness.