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

Commerzbank’s Charlie Lay and Dr. Henry Hao report the Reserve Bank of Australia raised its cash rate to 4.85% but softened guidance on further hikes, with a 6–3 vote and concern over unemployment and housing. They note inflation is now seen above 3% until end-2027, yet OIS pricing implies markets expect no additional RBA hikes and even modest cuts by late 2027.

The USD/CAD pair comes under renewed selling pressure on Wednesday, reversing modest weekly gains registered over the past two days amid a broad-based US Dollar (USD) weakness.

The British Pound (GBP) accelerated its rally against a weak US Dollar (USD) on Wednesday, boosted by news that the Democrats took control of the House and the Senate in the US midterm elections held on Tuesday.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann highlight a sharp pickup in upward momentum in GBP/USD after recent gains. Intraday, the British Pound (GBP) is expected to hold above 1.3410 and potentially rise toward 1.3480, with 1.3510 seen as a higher resistance.

The Japanese Yen (JPY ) holds moderate gains against the US Dollar (USD) on Wednesday, but it has given back almost half of the ground taken following news of a sound Democratic victory in the US midterm elections.

Here is what you need to know on Wednesday, November 4:

BNY’s Geoff Yu argues that resilient Eurozone data and a vigilant European Central Bank (ECB) now underpin the Euro, prompting a dial-back of earlier bearish EUR/USD views.

The New Zealand Dollar (NZD) holds onto early recovery move at around 0.5600 against the US Dollar (USD) during the European trade on Wednesday. The Kiwi pair bounces back after revisiting the 18-month low at 0.5564.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note building upward momentum in EUR/USD after a sharp early Asian session rise. Intraday, the Euro (EUR) is seen having room to test resistance at 1.1250, provided it holds above 1.1190. Over the next 1–3 weeks, renewed upside suggests a potential move toward 1.1250 and possibly 1.1280 if the pair can close above 1.1250.

The Indian Rupee (INR) extends its advance against the US Dollar (USD) on Wednesday, with early trends in United States (US) midterm elections pointing to the victory of Democrats in both the House and the Senate.

USD/CHF has lost its recent gains from the previous day, trading around 0.8170 during Asian hours on Wednesday. The currency pair is experiencing downward pressure as the US Dollar (USD) weakens.

The EUR/USD pair gains momentum to near 1.1235 during the early European trading hours on Wednesday.

The Australian Dollar (AUD) attracts bids against the US Dollar (USD) on Wednesday after facing a sharp sell-off in the last two trading days. The Aussie pair rises to near 0.6977 as the Australian Dollar gains due to an improvement in risk-appetite of investors.

EUR/JPY depreciates after two days of gains, trading around 177.40 during Asian hours on Wednesday. The technical analysis of the daily chart suggests that the currency cross is remaining within a descending channel pattern, indicating a prevailing bearish bias.

Silver price (XAG/USD) extends its losses for the second successive day, trading around $49.20 per troy ounce during Asian hours on Wednesday.