The US mid-term elections are now behind us. As was widely expected, Democrats took control of the House, while Republicans retained the majority in the Senate. As a result, the dollar weakened, but not much. The Kiwi surged on New Zealand’s robust employment data, with its traders now fixing their gaze to the RBNZ policy decision tonight.
Democrats Gain the House, Republicans Keep the Senate
The dollar traded lower against all but two of the other G10 currencies. It traded virtually unchanged only versus CAD and JPY. The main winner, and by a large margin, was NZD, which rallied overnight after New Zealand’s better-than-expected employment data (see below). GBP took the second place, staying supported by Brexit optimism. On his way out of yesterday’s cabinet meeting, Brexit Secretary Dominic Raab gave reporters a “thumbs up”, boosting further expectations of a Brexit deal breakthrough.
Yesterday’s big event was the US mid-term elections, with the results out today during the European morning. As was widely expected, Democrats took control of the House, while Republicans...
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