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.

The Mexican Peso rallies against the US Dollar following the Democratic blue sweep in the US midterm elections, with Democrats set to control the US Senate and the House of Representatives starting in January 2027.

Scotiabank’s FX strategists note the Pound rising about 0.4% intraday against the US Dollar, with UK PMI revisions having little impact. Market focus shifts to the Bank of England decision, where a 25bp hike is largely priced and further tightening expected.

The USD/CHF extended its losses during the North American session, hitting a two-month low of 0.8127 earlier in the day as traders dumped the US Dollar in favor of other haven assets like the Swiss Franc or the Japanese Yen. Consequently, the pair edges down 0.45% and trades at 0.8172.

EUR/USD trades on the front foot on Wednesday, supported by broad US Dollar (USD) weakness following the US midterm election results. However, the pair eases from an intraday high of 1.1273 as resilient US economic data helps the Greenback regain some ground.

Scotiabank analysts say the Euro (EUR) is firmer near 1.1240, slightly off intraday highs around 1.1265, with gains broadly tracking the softer US Dollar (USD) after the US midterms.

NZD/USD rebounds on Wednesday, trading around 0.5620, up 0.19% on the day at the time of writing.

AUD/USD edges higher on Wednesday as the US midterm election outcome weighs on the US Dollar (USD), helping the Australian Dollar (AUD) recover from the two-week lows reached following the Reserve Bank of Australia’s (RBA) dovish interest rate hike on Tuesday.

The Pound Sterling rallies to a seven-week high against the Greenback on Wednesday, in the aftermath of the US midterm elections, in which the Democrats are poised to win the US House of Representatives and the US Senate.  This is a hard blow for US President Trump, who congratulated the Democrats a

Rabobank’s RaboResearch team, including Molly Schwartz and Christian Lawrence, expects Banxico to keep its overnight rate at 6.50% on November 5 and through 2027, even as the Federal Reserve is seen hiking.

EUR/USD attracts fresh buyers on Wednesday as the US midterm election results rattle the US Dollar (USD), helping the Euro (EUR) reclaim 1.1200. The technical picture also improves, suggesting bulls are regaining a foothold after the pair touched 1.1104 last week, its lowest level since May 2025.

Standard Chartered’s Christopher Graham notes Euro area GDP growth excluding Ireland has slowed steadily since Q4-2025 while inflation continues to rise, increasing stagflation risks though not yet meeting that definition.

Commerzbank’s Norman Liebke expects the Central Bank of Brazil to pause its rate-cutting cycle at 13.75% amid fiscal and inflation concerns after Lula’s re-election. He notes unanchored inflation expectations but argues this is only a pause, with further cuts likely next year. Liebke sees scope for lower rates and anticipates the Brazilian Real will appreciate over the medium term.

The Canadian Dollar (CAD) gains around 0.50% against the US Dollar (USD) on Wednesday, pushing USD/CAD to seven-week lows as the Greenback faces fresh selling pressure following the US midterm election results. At the time of writing, the pair trades around 1.3933.

USD/JPY trades with a negative bias on Wednesday as the US Dollar (USD) slides to five-week lows following the US midterm election results.

The Euro (EUR) remains practically flat against the British Pound (GBP) on Monday, with both currencies appreciating sharply against the US Dollar (USD) following the results of the US midterm elections, but with the GBP buoyed by market expectations that the Bank of England (BoE) will hike interest

MUFG’s Derek Halpenny argues that the Japanese Yen remains under pressure from structural portfolio and FDI outflows, even as US yields correct and Washington maintains opposition to Yen weakness.

The British Pound (GBP) posts a fresh seven-week high at around 1.3500 against the US Dollar (USD) in the European trade on Wednesday. The GBP/USD pair strengthens as the victory of United States (US) Democrats in both houses of Federal law has weighed heavily on the US Dollar.

The Euro (EUR) accelerates its recovery against the US Dollar (USD) on Wednesday, favoured by the combination of a sound Democratic win in the US midterm Elections and hot Eurozone inflation data.

Eurozone’s preliminary Harmonized Index of Consumer Prices (HICP) data for October arrives at 4% Year-on-Year (YoY), as expected, higher than September’s final reading of 3.8%.

Eurozone Core Harmonized Index of Consumer Prices (YoY) meets forecasts (2.5%) in October

Eurozone Core Harmonized Index of Consumer Prices (MoM) registered at 0.3% above expectations (0%) in October

Eurozone Harmonized Index of Consumer Prices (YoY) meets forecasts (4%) in October

Eurozone Harmonized Index of Consumer Prices (MoM) above expectations (0%) in October: Actual (0.4%)

Societe Generale notes the Riksbank’s 25bp hike to 2.0% and guidance for further tightening, keeping policy accommodative versus neutral. Updated projections imply more hikes through 2028, narrowing the differential with the ECB.

Silver (XAG/USD) is one of the winners of the Republican defeat in the US midterm elections. The Precious metal has appreciated more than 4% on the day so far, reaching weekly highs at $52.00 after hitting a fresh one-year low at $48.62 earlier this week.

The US Dollar (USD) has reversed Tuesday’s gains against the Swiss Franc (CHF) on Wednesday and dives more than 0.5% on the daily chart, as investors ponder the consequences of a sound Democratic victory in the US midterm elections.

The GBP/JPY cross reverses an intraday dip to the 212.00 neighborhood, hitting a fresh two-month high during the first half of the European session on Wednesday. Spot prices currently trade just below mid-213.00s, up around 0.20% for the day, and seem poised to prolong a one-week-old uptrend.

Eurozone HCOB Services PMI registered at 51.4, below expectations (51.7) in October

Eurozone HCOB Composite PMI registered at 51.7, below expectations (51.9) in October