Market News

The US dollar is lower, Treasury yields are falling and US stocks are trading higher as markets digest a major shift in Washington. Democrats have won control of both the House and Senate, setting up divided government for the final two years of President Trump’s term. The new Congress takes office in January.

For traders, the immediate question is how much of the initial reaction can hold. Lower yields and falling oil provide a more supportive backdrop for equity buyers, but the election result alone does not determine the next trend. Inflation, employment, earnings and the Fed remain key barometers.

A tougher legislative path in Washington

The result gives Democrats greater power to challenge the administration through congressional…

• Prior was -$105.6 billion
• Goods trade balance -135.0B vs -$134.9 billion prelim
• US-China balance -$21.87 vs -$18.4 prior
• Exports $321.51 billion vs $315.67 billion prior

Imports of capital goods are a good measure of AI spending and that rose to $157.97 billion vs $146.41 billion previously. Expect that to stay high as long as the buildout continues.

For background, the US international trade report is published jointly by the Census Bureau and the Bureau of Economic Analysis at 8:30 am ET, about five weeks after the reference month ends. It provides the full picture of US trade, adding services and detailed breakdowns to the advance goods figures released a week or so earlier.

The headline figure is the overall trade balance in goods and…

• Prior month +4.2B

The details of the Canada Trade Balance for the month of September:

• Merchandise trade balance: C$5.4 billion surplus. Prior C$4.95 billion surplus 9revised from C$4.20B.

• Exports: +0.2% MoM to C$78.6 billion vs C$78.41B prior. Prior +3.2%.

• Imports: -0.3% MoM to C$73.71 Billion vs C$73.46B. Prior -2.2%.

• Export volumes: -4.0% MoM.

• Import volumes: -2.5% MoM.

• Trade surplus with the United States: C$12.3 billion. Prior C$12.1 billion.

• August exports revised to C$78.4 billion from C$77.9 billion; imports revised to C$73.5 billion from C$73.7 billion.

Canada’s merchandise trade surplus widened to C$5.4 billion in September from C$5.0 billion in August, according to Statistics Canada. Exports edged higher while imports declined, but the…

USD:

The Democrats’ victory in the US midterm elections has weighed on the US dollar on expected fiscal restraint.

This also comes amid an overstretched market, as long dollar has been one of the most crowded trades this year, so it remains vulnerable to quick reversals on changing macroeconomic conditions.

The focus will now shift back to the US-Iran negotiations and the US economic data. A diplomatic breakthrough could put renewed pressure on the greenback on lower inflation concerns and rate hike expectations.

An escalation, on the other hand, could initially support the US dollar on risk-off flows, but eventually weigh on it once growth fears replace growth concerns.   

EUR:

On the…

Headlines:

• US midterms 2026: Who would've thought that a war would be a bad idea?
• US futures continue to trim losses after early beatdown but AI worries linger
• Macro pulse: What if good news for stocks turns into bad news for the bond market?
• Nasdaq futures slide after Trump's midterm setback. AMD and Arista are telling a different story.
• European stocks rebound in the opening hour as US futures erase steep early losses
• Gold surges past $4,000 as US midterm fallout shakes up markets
• Why the Democrats' victory in the US midterm elections is driving gold higher and what to watch next
• Crude oil consolidates amid conflicting reports on US-Iran negotiations as escalation risk rises
• Eurozone inflation hits 4% for first time since 2023, piling pressure…

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FXStreet's video content initiative has become one of the company's strategic pillars over the …

Zcash, and many other cryptocurrencies, whipsawed today as the Democrats' victory in both the House and the Senate initially weighed on the crypto market before a strong rebound.

I'm not entirely sure about the reasons behind the rebound, as the main implication of a Democratic Congress is greater fiscal restraint. It won't limit Trump's power to impose tariffs or continue the war with Iran.

This should be a net negative for the growth outlook and, consequently, risk sentiment, unless the US-Iran war finally comes to an end.

Zcash does, however, have a specific bullish catalyst in the form of the upcoming NU7 network upgrade, scheduled for tomorrow. The upgrade…

Just when it looked like the aussie might be ready to throw in the towel this week, the dollar comes along to offer a helping hand. Talk about good timing, eh?

AUD/USD is bouncing back above the 0.7000 mark today, with the pair now trading around 0.7010 as the dollar comes under pressure following the US midterm elections. The rebound we're seeing is helping to undo the attempted downside break below the figure level after the RBA decision yesterday. However, I wouldn't get too carried away just yet.

Looking at the hourly chart, the latest push higher is running into resistance around 0.7020 from the 200-hour moving average (blue line). That remains the first hurdle for buyers to clear before attempting any stronger recovery.

And even…

HFM, Official Partner of Arsenal, is bringing the iconic Premier League Trophy  to Lagos on Tuesday, 17 November 2026, kicking off an exciting three-city African tour.

As the first stop on the tour, Lagos will set the stage for an unforgettable celebration of football,  bringing fans closer to one of the sport's most prestigious trophies.

Inspired by the city's vibrant energy, the event promises a lively atmosphere featuring  Afrobeats, interactive games, entertainment and, most importantly, the opportunity for fans to  pose for a memorable photo alongside the Premier League Trophy.

Through its partnership with Arsenal FC, HFM is bringing the celebration of the Club's…

• Eurozone October preliminary CPI +4.0% vs +4.0% y/y expected
• Prior +3.8%
• Eurozone October preliminary core CPI +2.5% vs +2.5% y/y expected
• Prior +2.5%

Headline annual inflation in the euro area climbs to 4% in October, hitting that mark for the first time since September 2023. Now, that's a doozy for ECB policymakers.

The culprit is once again higher energy prices, with energy inflation accelerating to 20.8% in October this year compared to the same month last year. Even on a monthly basis, energy prices were seen pushing up significantly in rising by 1.4%.

That being said, there were broad increases across all monthly estimates as headline prices went up by 0.4% on the month in October. The breakdown shows food prices being up 0.4% on the…

Well, well, well. Look who's back from the dead. Gold is finally catching a break today and it is doing so in some style.

The precious metal is up 3% today to around $4,046 now, breaking back above the $4,000 mark as markets digest the Democratic sweep in the US midterm elections.

To keep things more interesting, we're also seeing US futures complete a remarkable comeback after an earlier beatdown with S&P 500 futures now up nearly 1%. Meanwhile, the dollar is sinking lower across the board even if there isn't all too much reaction in Treasury yields for now. So, what's got gold buyers all excited again?

To start, the better risk mood is definitely one that is playing a role. Gold had been struck with risk fears and liquidation risks amid…

Crude oil extended the selloff yesterday after Al Arabiya reported that the US and Iran had made concessions regarding the Iranian nuclear program and frozen funds, and that Washington had approved the draft of the Memorandum of Understanding. The report also added that the announcement would be made step by step and simultaneously.

The bearish momentum then faded when Iran’s Secretary of Supreme National Security Council said that the US response to Tehran’s demands wasn’t convincing and IRIB news reported that claims of US and Iran being close to a deal were wrong.

Trump reiterated that the US has no immediate plan to attack Iran, but you never know with…