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.

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.