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US Dollar and Treasury Yields Decline on Congress Split

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USD

The dollar index which measures the greenback against a basket of major currencies fell to a two-week low of 95.90 ahead of the European trading session. President Trump's party lost full control of Congress as the Democrats won the majority of the House of Representatives while his party kept control of the Senate. Also, the results weighed on US treasury yields were the 10-Year yields fell to a five-day low of 3.17%.

EUR

The euro rose against the United States dollar and the Japanese yen, supported by the optimism surrounding Italy's budget. The Italian Minister of Economy and Finances declared that he was working for compromises on budget with the EU. The EURUSD traded at a two-week high of $1.1475, and the EURJPY rose to a two-week high of 129.90.

GBP

The British Pound advanced further against the dollar following the comments of Dominic Raab. He said that he would announce a "moment of decisive progress" on Thursday. The GBPUSD traded near at a three-week high of $1.3155.

NZD

The New Zealand dollar strengthened on the robust jobs data. The NZDUSD climbed to a three-month high of $0.6780 as the employment change in the third quarter jumped 1.1%, and the Unemployment rate dropped to 3.9%, the lowest since 2008. Meanwhile, the inflation expectations remained steady at 2.0%. Market participants will focus today on the outcome of the Reserve Bank of New Zealand meeting.

Equities

Major US stock futures gained a lift from the midterm elections. The Dow Jones Industrial Average futures rose to a three-week high of 25808, the S&P500 futures traded at a high of 2779, and the Nasdaq futures surged to 7098.

Metals

Gold prices appreciated as investors sought cover from the US elections volatility and risks. The gold ounce rose to $1233, and the silver ounce trade at $14.67.

Oil

Oil prices settled lower for the seventh consecutive day on inventories buildup. The American Petroleum Institute reported that the weekly crude oil stock rose by 7.830 million barrels last week. The West Texas Intermediate crude futures tumbled to $61.34, the lowest since March, and the Brent futures fell to an eleven-week low of $71.21. The Energy Information Administration will report the official data later today.

Major Economic Events

GMT Country Event Expectation Previous
15:00 CA Ivey PMI (Oct) 50.9 50.4
15:30 US Crude Oil Inventories 2.433 3.217
20:00 NZ RBNZ Interest Rate Decision 1.75% 1.75%

 
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