Dollar Seesawed Versus the Euro anticipating U.S. Mid-Term Elections Results

Daily Update - 7th November 2018

Yesterday’s Focus

• AUD Reserve Bank of Australia Interest Rate Decision
• EUR Markit Services PMI, EUR Producer Price Index

Yesterday’s explained

US Congressional elections are underway and, with the exception of the GBP/USD , dealing with Brexit related news, majors remain within familiar levels, with a moderate pressure on the greenback.
The EU released the final versions of October Markit PMI, which were above initially estimated but indicated that growth in the Union weakened to the lowest in over two years. The US released some minor figures, which showed that the number of job openings decreased

The GBP/USD pair topped for the day at 1.3096, its highest since October 19, as despite contradictory Brexit headlines kept flooding news' feeds, hopes for a deal prevailed. UK PM May´s cabinet met this Tuesday, where ministers discussed a compromise plan for the Irish backstop. There won't be further meetings this week as plenty of work needs to be done, according to a May's spokesman.

 

Today’s Focus

• NZD Employment Change & Unemployment Rate

Today’s Market

On Wednesday, focus will be on the Mid-Term US Election Results and it will circulate around on who will hold the control of Congress of United States for the next two years. The results will be out staring midnight GMT, with the final states reporting at around 6:00 GMT. If Republicans retain control, both the greenback and Wall Street will likely react rallying strongly. If US elections result against the greenback, the GBP/USD pair rally will likely be exacerbated, while on a positive outcome for Trump, dollar's gains may be limited against the Pound.