ECB's Draghi: ECB could look through transitory inflation weakness - Bloomberg

Eren Sengezer FXStreet

According to a recent report by Bloomberg, European Central Bank President Draghi said the ECB could look through transitory inflation weakness when formulating monetary policy.

Key quotes (via Bloomberg):

While there are still factors that are weighing on the path of inflation, at present they are mainly temporary factors that typically the central bank can look through
A considerable degree of monetary accommodation is still needed for inflation dynamics to become durable and self-sustaining

Following the report, the EUR/USD leaped to its highest level since late August of 2016 at 1.1330.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

AUD/USD reclaims 0.7000 as blue wave sweep tumbles the US Dollar

The Democratic blue sweep in the US midterm elections weighed on the US Dollar and boosted the Australian Dollar, which has bounced from a 12-day low of 0.6954 and reclaimed 0.7000, gaining over 0.59% at the time of writing.

USD/JPY: Bullish pin bar faces 200-day SMA wall

The USD/JPY edges lower but trims some of its earlier losses, down 0.20% in the aftermath of the US midterm election results. However, the pair seems to form a tilted bullish ‘pin bar ’, yet it remains consolidated within the 50- and 200-day SMAs, each at 157.39 and 158.62. At the time of writing, the pair trades at 158.41.

Gold pops to four-day highs near $4,050

Gold manages to regain some composure, leaving behind two consecutive daily pullbacks and reclaiming the area above the key $4,000 mark per troy ounce on Wednesday. The strong decline in the US Dollar, shrinking US Treasury yields across the curve and lower crude oil price all contributes to the yellow metal’s recovery.

Circle reserve income falls 8% as ARC presale lifts Q3 revenue

Circle (CRCL) reported increased revenue in its Q3 earnings update on Wednesday as the $182 million ARC token presale offset the decline in reserve income. The stablecoin issuer stated that total revenue and reserve income reached $865 million in Q3, up 17% from a year earlier. Net income from continuing operations increased 5% to $226 million, while adjusted EBITDA climbed 85% to $317 million.

US midterms 2026: Investor Q&A on the Democratic sweep

1. Gridlock replaces the stimulus narrative. A Democratic Congress would constrain Trump's ability to pursue additional fiscal expansion and legislative tax measures. But it cannot simply reverse the president's entire economic agenda. Executive powers, existing legislation and presidential vetoes remain important. 2. AI faces a higher hurdle, not an extinction event.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.