Daily Forex Market Report 09-Nov-2022: Mid-terms roll ahead softening USD Index

With equities rising on divided US election speculation, is the greenback beginning to cool off?

Election results continue to pour in at the time of writing, with a divided political landscape the favourite prediction.

Despite some light clawbacks this morning, equities seem to be responding well to the outcome as it develops, at the expense of the US Dollar Index.

DYX is testing lows of 109 last seen all the way in on September 20, though some support is being clocked on the four-hour price chart.

US Dollar Index (DYX) softens throughout election week – Source: capital.com

With the dollar under pressure, other major currencies have caught their breath.

Sterling is currently buying 1.154 US dollars following a strong Tuesday session, sparking hopes of a break above US$1.16.

US mid terms- net positive or net negative for the GBP/USD pair? – capital.com

Following yesterday’s 0.7% dip, EUR/GBP remains rangebound at 87.2p.

The euro has been strong against the greenback lately, having gained over 2.5% across the latest seven-day period, thus breaking above parity.

Euro bulls will be fighting to keep it that way.

European and UK calendars are clear today and while attention will barely be trained on the US economic calendar, the 30-year mortgage rate is worth paying attention to.

30-year mortgage rates cool off slightly, despite hawking Fed – Source: Trading Economics

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