The US Dollar fell versus a basket of major currencies on Wednesday, as the focus shifted from the U.S. midterm election results to the monetary policy.

November 8, 2018 0 By Ali Hwary

The US Dollar fell versus a basket of major currencies on Wednesday, as the focus shifted from the U.S. midterm election results to the monetary policy and the Federal Reserve getting its two-day meeting underway.

In the economic space, Democrats snatched the extra seats needed to regain control of the House, raising the prospect of political gridlock, though Trump’s somewhat conciliatory tone provided a little hope that some key legislative measures could be pushed through Congress with bipartisan support.

Meanwhile, The Federal Open Market Committee is expected to result in an unchanged decision on interest rates on Thursday. However, market participants will likely scrutinize the monetary policy report for further clues on a December rate hike.

Over in Europe, Investors are looking for ECB’s president Draghi’s speech on Thursday, European Central Bank (ECB) suggests that the Governing Council is in no rush to alter the forward-guidance as ‘measures of underlying inflation remain generally muted,’ and it seems as though President Mario Draghi will retain the zero-interest rate policy for the future as officials expect borrowing-costs to ‘remain at their present levels at least through the summer of 2019.

The Euro remains flat at the close after it surged throughout the session to reach its highest price since October 24 at 1.14995.

Over in the United Kingdom, The GBPUSD rose by 0.2 percent versus US dollar to trade at 1.31225 at the close.

In terms of Safe-havens, the Japanese Yen edged lower while the Swiss Franc rose against the US dollar on Wednesday.

The USDJPY rose by 0.1 percent to end the session at 113.489. On the other hand, the USDCHF fell moderately by 0.01 percent to close the session at 1.0022.

Precious metal Gold lost 0.1 percent against the Greenback on Wednesday to close at 1226.09 XAUUSD per ounce.

In terms of commodity-currencies, the Greenback lost after gaining for three sessions in a row versus the Loonie Dollar to settle at 1.31118 USDCAD.

Meanwhile, in Asia, The AUDUSD jumped by 0.4 percent to trade at 0.7275 and NZDUSD surged by 0.72 percent to trade at 0.6785 at the close.

In Cryptocurrencies, Bitcoin and Ethereum were both tradings at higher levels versus the Greenback on Wednesday, to settle at 6479.51 BTCUSD, 214.64 ETHUSD, On the other hand, Litecoin fell by 1.75 percent to close the session at 52.22.

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