Morning Forex Fundamental: USD

Morning Forex Fundamental: USD

'We haven't been above 95 during this entire recovery' - William Dunkelberg, NFIB's chief economist

U.S. October small business optimism soared to a five-month high

Impact High

U.S. small-business sentiment soared to the five-month high in October, as companies projected an increase in sales. The NFIB Small Business Optimism Index rose 0.3 in October to 93.1 from 92.8 in September. At the same time, the gauge, which measures expectations for improved business conditions, stood at 2%, unchanged from the previous month’s reading. Small companies are now focused on the so-called "fiscal cliff", which is the $600 billion of automatic tax hikes and spending cuts by the end of 2012.

'Uncertainty about the election has been a major impediment to spending because the presidential candidates offered very disparate policies for the economy,' William Dunkelberg, the group’s chief economist, said in a statement. 'If owners are unable to even predict the direction of the economy let alone the pace of growth, uncertainty will seriously impede spending and hiring.'

'We haven't been above 95 during this entire recovery' that started in July 2009, said William Dunkelberg, NFIB's chief economist.

Standard & Poor's 500 lost 0.4 per cent to 1,374.53. The Dow Jones Industrial Average fell 0.46 points to 12,756.18. The Nasdaq Composite tumbled 0.7 per cent, or 20.37 points, to 2,883.89