Forex Today: US jobs data in the limelight amid Midterms hangover

Pablo Piovano FXStreet

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.

The US Dollar Index (DXY) has dropped to just pips away from the 101.00 contention zone, before attempting a lacklustre recovery. The usual weekly Initial Jobless Claims are due alongside Challenger Job Cuts.

EUR/USD has flirted with multi-week tops around 1.1270, extending its weekly recovery in response to the strong decline in the US Dollar across the board. The S&P Global Construction PMI in Germany and the Eurozone is expected, seconded by Germany’s Factory Orders and Producer Prices in the broader Euroland.

GBP/USD has clinched its sixth consecutive daily advance, briefly piercing the 1.3500 barrier for the first time since mid-September. The BoE meets and is expected to raise its policy rate to 4.00%. Data-wise, the S&P Global Construction PMI will be the only release of note.

USD/JPY has reversed two daily upticks in a row, trading with modest losses after once again faltering around 158.80. The final S&P Global Services PMI is due, along with the BoJ Minutes and a 10-Year JGB Auction.

AUD/USD has bounced off the area of three-week lows, reclaiming the key 0.7000 yardstick and a tad above. Next on tap in Oz will be the final prints of the Building Permits and Private House Approvals on November 9.

Front-month WTI futures (December contract) have added to the weekly correction, receding to the area of three-week lows near the $91.00 mark per barrel as traders continued to assess the likelihood of a potential end to the US-Iran crisis following the Democrats’ win at the US midterm elections.

Gold has reclaimed the area beyond the key $4,000 mark per troy ounce, hitting at the same time fresh four-day highs in response to the marked sell-off in the US Dollar and declining US Treasury yields across the curve.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

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.

Crypto Today: Bitcoin, Ethereum, XRP extend advance as US Dollar slides on Democrats' US midterm victory

Bitcoin trades above $78,000 on Wednesday as risk-on sentiment improves in the broader cryptocurrency market. Ethereum mirrors BTC’s recovery outlook, hovering above $2,300. Ripple similarly exchanges hands above $1.28, marking two consecutive days of gains.

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.