The USD fell for the 2nd consecutive day after the solid decline on Friday despite the better than expected jobs report. The greenback fell ahead of the midterm elections tomorrow which have the Republicans retaking the house. The Senate is a tossup. However, results may be delayed is much as a month depending upon how close the key races are. It's almost a given that there will be election fraud charges.

The US CPI data comes out on Thursday with expectations for an other strong month-to-month reading of 0.6% – 0.7%. The year on year is expected to dip to 8.0% from 8.2% but that is still very high. The core measure is expected to rise by a healthy 0.5%.

Nevertheless, the dollar was mostly lower with the greenback falling 1.27% vs the GBP, 0.64% vs the EUR and 0.54% vs the CHF. The greenback was near unchanged vs the JPY and the CAD.

forex
The strongest to the weakest of the major currencies

Taking a look at some of the major currency pairs:

  • EURUSD: The EURUSD moved to a high of 1.00338 and away from the parity level in the process. The pair is inching closer to the 100 day MA at 1.00462. In October, the price tested that MA (at a higher level) but found willing sellers. Will the new trading day make a run at that MA level? Or will sellers keep a lid on the pair? A close above will be the first since February.
  • GBPUSD: The GBPUSD moved above its 100 and 200 hour MAsa at 1.13626 adn 1.14607 respectively today. The high reached 1.15409 as it moved closer to a downward sloping trend line at 1.1555. Swing highs up to 1.1566 will be eyed for potential risk focused sellers on more upside into the new trading day. The GBPUSD has moved up around 400 pisp from the post employment low on Friday
  • USDJPY. The USDJPY moved higher in the London session but found sellers near the 100 hour MA (around 147.50). The price moved down to an intraday low of 146.20 before recovering in the NY session (trades at 146.63). There is topside resistance at 146.81 to 146.985 .
  • USDCAD: The USDCAD closed below key support on Friday at 1.3500 to 1.3510, but traded above and below that area in trading today as traders consolidated the declines around the key support level. The price is trading at 1.3491 below the key area above, giving a slight bearish tilt into the new trading day.

IN other markets:

  • Spot gold is down -$5.66 or -0.35% at $1674.36
  • Spot silver is down -$0.06 or -0.33% at $20.79
  • WTi crude oil is down about $0.57 at $91.87.
  • Bitcoin is steady at $20682.

In the US stock market today, the major indices all rose for the 2nd consecutive day. The gains were led by the Dow 20 stocks which rose by 1.31%. The final numbers are showing.

  • Dow industrial average up 423.59 points or 1.31% at 32827101
  • S&P index up 36.33 points or 0.96% at 3806.88
  • NASDAQ index +89.28 points or 0.85% at 10564.53
  • Russell 2000 9.943 points or 0.55% at 1809.809