US Dollar Falls Amid Results of Midterm Elections

Market Reviews

The US dollar fell against the main currencies, after it became known that according to the latest estimates, the Democrats gained 14 of the 23 seats held by the Republicans, necessary for winning a majority in the House of Representatives.

New Zealand dollar rose sharply after the publication of data on the labor market. Euro and Australian dollar are the second and third strongest. Economic data from New Zealand showed, that unemployment rate dropped to 3.9% in Q3 versus expectation of 4.4% (the lowest level in a decade since June 2008). Employment rate rose 0.5% to 68.3%, highest since the series began 30 years ago. Participation rate also rose 0.2% during the quarter to 71.1%. Employment grew 1.1% qoq versus expectation of 0.5% qoq.

On stock markets, DOW added 0.68% overnight. S&P 500 rose 0.63% while NASDAQ gained 0.64%. Asian are also higher, with Nikkei trading up 0.45%, Hong Kong HSI up 1.17%, China Shanghai SSE up 0.26%, Singapore Strait Times up 0.53%.

It was reported, that UK Brexit Minister Dominic Raab is set to announce the full withdrawal agreement on November 19 and put to Parliament. And, according to some sources, the Parliament would vote on the bill on November 27. But Prime Minister Theresa May’s spokesman quickly denied it.

The RBNZ policymakers are widely expected to leave interest rates unchanged on Wednesday, under a fragile global trade environment and downbeat local business sentiment. The Bank is anticipated to hold interest rates at the 1.75% record low for the second year.