US equities slipped as Democrats looked set to flip both chambers of Congress, with markets weighing the prospect of tighter regulation, including for AI, and reduced scope for fiscal policy given the high US national debt. The dollar softened on the same constraints, while cryptocurrencies faced the risk of tougher legislative scrutiny. Treasuries and gold firmed on expectations that a Democratic Congress could restrain President Donald Trump’s agenda, and oil edged higher in Asia as traders watched how the US–Iran situation might evolve post-midterms.
Central Banks and Economic Data
The Bank of England was expected to raise rates in the late European session, with GBP OIS indicating an almost fully priced move; markets then looked for a December pause and renewed tightening from February. In data and events, October’s ADP employment report and the US ISM non-manufacturing PMI were due, alongside remarks from the ECB’s Lane; the BoJ was set to publish minutes, with Dallas Fed President Logan also speaking, while Germany’s September industrial orders and a hold from Norgesbank were on the calendar. GBP/USD targeted 1.3510 (R1), with levels at 1.3655 (R2), 1.3300 (S1) and 1.3155 (S2) in focus; RSI neared 70 and price met the upper Bollinger band. Gold broke 3960 (S1) as RSI neared 50, with 3600 (S2) and 4275 (R1) tracked.
