Post-Election Dollar Weakness Supports Markets (11.05.2026)

The US dollar weakened following the sweep of Democracts in the midterm elections, while renewed hopes for a resolution to the US-Iran conflict pushed oil prices lower and eased inflation concerns. 

The dollar index slipped to about 101.3 on Thursday, adding to its losses as investors responded to the victory of Democrats. Reduced political uncertainty lifted stocks worldwide and lowered demand for the dollar as a safe haven.  Gold climbed above $4,120, and silver advanced toward $53 as declining Treasury yields supported precious metals. Meanwhile, the euro extended its recovery to 1.1265, helped by improving Eurozone manufacturing data, while sterling held near five-week highs around 1.3470 ahead of an anticipated Bank of England rate hike. The yen also strengthened following hawkish Bank of Japan minutes. Investors now await Friday's US employment report for further clues on Federal Reserve policy.

Euro Extends Recovery to 1.1265

EUR/USD climbed to 1.1265 on Thursday, expanding its recovery from multi-month lows near 1.1100 as traders trimmed long dollar positions post-midterms. Upward revisions to Eurozone manufacturing PMIs and a reduced Atlanta Fed GDPNow forecast provided further support. However, Fitch's negative credit outlook on French sovereign debt continues to limit the euro's broader long-term potential.

The first resistance is positioned at 1.1290 while the support starts from 1.1200.

Gold Gains on US-Iran Peace Hopes

Gold climbed above $4,120 on Thursday as midterm gains of the Democrats fueled hopes of resolving the US-Iran conflict, sending oil prices lower. A weaker dollar and declining Treasury yields provided further support. Investors now await Friday’s US employment report, while markets price a 79% probability of a December Fed rate hike.

First resistance is seen at $4160, with initial support near $4090.

Yen Gains on Hawkish BOJ Minutes

The Japanese yen firmed past 158 per dollar on Thursday, advancing for a second straight session after the Bank of Japan's September minutes revealed one board member saw scope to accelerate interest rate hikes. Although the BOJ held rates at 1.25% in October, it signaled inflation has met its 2% target. A softer US dollar following the Democrats’ midterm sweep provided further support.

First resistance is seen at 158.25, with initial support near 157.40.

GBP/USD Holds Near 1.3470 High

GBP/USD held near 1.3470 on Thursday, retaining a five-week high as the US dollar softened following the midterms. Markets broadly anticipate the Bank of England will raise interest rates by 25 basis points to 4.00% today, marking its first increase in over three years. However, any dovish signaling from Governor Bailey regarding future monetary policy could cap sterling's advance ahead of Friday's US payrolls report.

From a technical view, resistance stands near 1.3540, with support around 1.3430.

Silver Rises Toward $53 as Oil Tumbles

Silver climbed toward $53 per ounce on Thursday, extending its advance as the midterm results fueled hopes for a resolution to the Iran conflict, driving oil prices sharply down. Donald Trump acknowledged the war hurt Republican performance and indicated no immediate escalation plans. Softening Treasury yields and a weaker US dollar provided additional momentum ahead of Friday's pivotal employment report.

From a technical view, resistance stands near $53.80, while support is located around $51.20.