The pound sterling rate rose by 0.60% to 1.3495 dollars after the Democrats' victory in the midterm elections. The euro also added 0.63%, reaching 1.1262 dollars.
The pound sterling strengthened after the Democrats won victories in both chambers of the US Congress following the midterm elections. The dollar weakened against the backdrop of these results, which supported the British currency.
As of 13:25 Moscow time, the pound rose by 0.60% against the dollar and reached the mark of 1.3495. The euro also rose by 0.63%, climbing to 1.1262 dollars.
The Democrats gained seven additional seats in the Senate, including South Carolina, Maine and Texas. As a result, they occupied at least 232 seats in the House of Representatives and 54 seats in the Senate.
The dollar's decline looks unstable. Chris Turner, global head of currency markets at ING, noted that overnight dynamics may foreshadow events in 2027, since the new Congress will not begin work until January. According to him, a Democratic majority will become a moderately negative factor for the dollar due to possible consequences for spending on artificial intelligence and the risk of a government shutdown.
Turner stressed that the dollar should not be sold today because of a story that may relate to 2027. He added that the dollar index minimum at 101.25 looks like an important support level that may hold until the October employment report.
Among the key factors of the day are ADP employment data, the ISM services business activity index for October and the US Treasury's announcement on quarterly borrowings. Official employment data will be released on Friday.
As for the euro, Turner pointed out that the pair is correcting after the overnight jump to 1.1260. The 1.1260–1.1270 zone, in his opinion, will become the upper boundary of the short-term trading range. Further movement will depend on the dynamics of technology company stocks.
Inflation in the eurozone accelerated to 4% in October compared to 3.8% in September amid a 20.8% year-on-year rise in energy prices. Core inflation remained at 2.5%. According to Turner, the dollar's dynamics will most likely be determined by macroeconomic and monetary factors that remain favorable for the American currency.