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MORNING quote EUROPE-Dollar jolted by Iowa surprise

A take a look at the day ahead in European and international markets from Wayne Cole.

The early action Monday has actually remained in currencies as the dollar took a knock from a brand-new poll in Iowa showing Democratic governmental contender Kamala Harris leading Republican politician Donald Trump. That sufficed to see the dollar down 0.9% on the yen and 0.6% on the euro, while the trade-sensitive Aussie bounced 0.8%.

Analysts tend to presume Trump's policies on migration, tariffs and tax cuts would put a lot more upward pressure on the U.S. dollar and yields, than a Harris victory.

Of particular note was the Des Moines Register/Mediacom Iowa Poll which amazed everyone by revealing Harris up 3 points on Trump in the state, a significant shift from a couple of weeks ago. This poll has a great track record and is thought about a bellwether for votes throughout the swing states.

Because last week, Harris is seeing a boost in the surveys, highlighted by the Selzer Survey of Iowa where some are using as a. proxy for efficiency amongst the Blue Wall battlefield states. ( Michigan, Pennsylvania and Wisconsin), JPMorgan said in a. note.

Betting site PredictIT showed Harris at 53 cents to Trump on. 51 cents - what investors are willing to bet for an opportunity to. win $1 - compared to 42 cents to 61 cents just a week ago.

The average of opinion polls is still too close to call and. it's quite possible the outcome of the vote might not be understood on. Wednesday. In 2020, for example, Pennsylvania was not called. up until the Saturday after the election. There could also be court. obstacles to results which might drag out for weeks.

Markets assume the Federal Reserve will proceed and cut. rates on Thursday no matter the result, with futures implying a. 98% chance of 25 basis points. They are likewise pricing an 80%. likelihood of another quarter point in December, though that. might quickly change depending upon who ends up being president-elect.

The Bank of England is likewise expected to cut by a quarter. point on Thursday, while the Riksbank is seen easing by 50 basis. points. Norges Bank and the Reserve Bank of Australia (RBA) are. seen on hold today.

The other market mover on Monday was oil, which bounced 1.4%. or so after OPEC+ said on Sunday it would postpone a prepared. December output walking by one month. This was the second time it. has actually extended a 2.2 million bpd cut and just goes to demonstrate how. worried they are about global need.

Asia in particular has been weak with crude imports in the. first 10 months of the year down 200,000 bpd from the same. period in 2023, according to LSEG information.

Secret developments that could affect markets on Monday:

- Participation by ECB President Christine Lagarde and ECB. Board Member Piero Cipollone in Eurogroup meeting

- ECB members appearing include Elizabeth McCaul, Frank. Elderson, Christodoulos Patsalides and Claudia Buch

- Last EZ manufacturing PMIs for October

- U.S. resilient items, factory orders for September

(source: Reuters)