The euro bounces up and hits session highs at 1.0050.The US dollar pulls back with all eyes on the US elections.
EURUSD is aiming for 1.0100 – SocGen.
The euro has squeezed higher on Tuesday’s US trading to hit session highs at 1.0550 with the US dollar dropping suddenly across the board. From a wider perspective, however, the pair has been moving without a clear direction, both sides of the parity level, with the investors adopting a more cautious stance.
The dollar dives with all eyes on the US mid-term elections.Appetite for risk waned on Tuesday as the markets await the outcome of the US mid-term elections. The definitive results of the elections are likely to draw out for some days but initial polls are suggesting a Republican victory that would trigger a Congress gridlock.
The foreseen Republican victory is likely to complicate the approval of the fiscal stimulus measures expected to be launched next year, which would ease pressure on the Fed to ramp up interest rate hikes.
The US dollar has rallied across the board this year, appreciating beyond 10% against the euro, fuelled by the Federal Reserve’s aggressive monetary tightening cycle. With market developments feeding speculation about the end of that cycle, the US dollar might start to give away gains.
EURUSD: aiming to 1.0100 – SocGen
Currency analysts at Société Générale see the pair aiming for October’s peak, at 1.0100: “Daily MACD has been posting positive divergence since July and has now entered positive territory denoting downward momentum is gradually receding. However, the pair has to establish itself beyond 1.0100 to affirm an extended bounce towards 1.0190 and graphical levels of 1.0290/1.0360.”
EURUSD rallies toward 1.0100 on broad US Dollar weakness
EUR/USD has gathered bullish momentum and climbed above 1.0050 in the second half of the day on Monday. The broad-based selling pressure surrounding the US Dollar amid the risk-positive market environment on the US Mid-Term Election day fuels the pair’s rally.
GBPUSD reaches fresh weekly high above 1.1550
GBPUSD has extended its rally as buyers took action once the pair broke above 1.1500. The US Dollar struggles to find demand as a safe haven on Tuesday as risk flows continue to dominate the financial markets, providing a boost to the pair.
Gold at fresh one-month highs above $1,710
Gold soared past $1,710 and aims to challenge October’s monthly high at $1,729.87. A sharp decline in US Treasury yields during US trading hours triggered a USD sell-off. Market participants await political clues amid US mid-term elections.