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A setback for Obama is a pro business outcome - Societe Generale

FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale noted that The Republicans gained control over both the House and Senate in the US mid-term elections.

Key Quotes:

"A setback for President Obama though it isn't clear (to me) that the result tells us much about the next presidential election or indeed promises any significant policy changes in the near-term. The market reaction has been to see this as a pro-business outcome and so in FX markets, the yen is the big loser."

"I'm no US political expert but a setback for a second term President in mid-terms isn't new, and what this has to do with USD/JPY isn't obvious, but maybe the market just wanted a catalyst to get back to some of its favourite trends - selling gold and the yen, and buying stocks”.

“Meanwhile, BOJ Governor Kuroda promised that the BOJ will do “whatever it can” to overcome the deflation undermining the economy”.

“He doesn't sound like a policy-maker who believes he is out of ammunition but rather, one who is singing from the same hymn-sheet as the ECB's Mario Draghi, but without the handicap of the ECB's strict inflation mandate and Europe's political structure."

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