Forex Today: US jobs data in the limelight amid Midterms hangover
The US Dollar (USD) has traded broadly on the back foot on Wednesday, at some point retreating to the area of five-week lows as market participants were assessing the Democrats’ stunning victory at the US midterm elections.
On Wednesday, the US Dollar experienced a downward trend, briefly dipping to five-week lows amid the Democrats' surprising victory in the US midterm elections. The US Dollar Index (DXY) approached the 101.00 contention zone before attempting a weak recovery. The upcoming Initial Jobless Claims and Challenger Job Cuts were set to be released alongside the data.
EUR/USD rallied to multi-week highs around 1.1270, mirroring the broader decline in the US Dollar. The S&P Global Construction PMI in Germany and the Eurozone, as well as Germany's Factory Orders and Producer Prices, were scheduled for release. GBP/USD achieved its sixth consecutive daily increase, briefly surpassing the 1.3500 mark for the first time since mid-September.
The Bank of England was expected to raise its policy rate to 4.00%. USD/JPY retraced two daily upticks in a row, trading with minor losses as it again fell around 158.80. The final S&P Global Services PMI, BoJ Minutes, and a 10-Year JGB Auction were anticipated. AUD/USD rebounded from three-week lows, surpassing the 0.7000 level and moving slightly higher.
The final Building Permits and Private House Approvals figures for November 9 would be announced later in Australia. WTI futures (December contract) continued the weekly correction, sliding to three-week lows near the $91.00 mark as traders gauged the potential end to the US-Iran crisis following the Democrats' triumph in the US midterm elections.
Gold rose to retest the key $4,000 level per troy ounce, reaching fresh four-day highs amid the US Dollar's sharp decline and falling US Treasury yields across the curve.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
