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Dollar Subdued as Midterm Uncertainty Weighs, Sterling Tracks Higher

11/7/2018, 10:37:29 AMBasics of Trading
Dollar Subdued as Midterm Uncertainty Weighs, Sterling Tracks Higher

The dollar was subdued against its rivals Thursday, as investor focus shifted to the U.S. midterm results, while ongoing strength in sterling, and weaker-than-expected U.S. labor market data also weighed.

The U.S. dollar index, which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.07% to 96.15.

The U.S. Labor Department's latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in September fell to about 7.009m from the prior month, missing expectations for 7.100m.

The labor market report arrived as investors await the results of the midterm elections.

Some analysts said a strong showing for Republicans could see further fiscal measures implemented including the potential for a second round of tax cuts and a program of infrastructure spending, which could boost inflation, potentially supporting the dollar.

Gains in the dollar were also weighed down by ongoing strength in the sterling as Britain and the European Union said Tuesday differences over the Irish border were holding up a Brexit deal, but stressed an agreement was close.

GBP/USD rose 0.42% $1.3096.

EUR/USD rose 0.04% to $1.1413, pairing early-session gains, which had followed upbeat eurozone services data.

Safe-haven yen, meanwhile, lost ground against the greenback as sentiment on risk remained intact as Wall Street held gains.

USD/JPY rose 0.22% to Y113.45.

USD/CAD, meanwhile, rose 0.18% to C$1.3135 as a slump in oil prices kept a lid on the oil-price-sensitive loonie.