US Dollar Hits One-Month Low as Midterm Results Lift EUR/USD and GBP/USD

Forex Market Update — November 4, 2026 The US Dollar weakened sharply on Wednesday, falling to a one-month low after Democrats secured majorities in both chambers of Congress in the US midterm elections. Investors assessed the possible implications for policy, technology-sector regulation and the outlook for AI-related investment. The US Dollar Index declined to around 101.41. The euro rose approximately 0.4% to $1.1236, while sterling gained around 0.46% to $1.3475. The Japanese yen and Swiss franc also strengthened, and the US 10-year Treasury yield slipped nearly three basis points to around 4.921%. EUR/USD: The pair advanced as broad-based dollar weakness supported the euro. The market's next major focus is the Eurozone's preliminary October inflation report. A stronger-than-expected reading could influence expectations for the European Central Bank's policy path. GBP/USD: Sterling climbed to around 1.3475. Traders are positioning ahead of Thursday's Bank of England decision, with a 25-basis-point rate increase widely expected. The Bank's guidance will be important for the pound's next move. USD/JPY: The pair came under pressure as the yen strengthened alongside other major currencies against the dollar. US Treasury yields, Japanese official comments and changing risk sentiment remain important drivers. AUD/USD: The Australian dollar may remain sensitive to the aftermath of the Reserve Bank of Australia's latest rate increase to 4.85%. The split 6-3 decision and softer guidance have raised questions about how much further tightening may be possible. Other pairs to watch: USD/CAD could react to changes in oil prices and Canadian rate expectations. NZD/USD remains exposed to New Zealand labour-market developments, while EUR/GBP may respond to the difference between ECB and Bank of England policy expectations. Today's economic calendar: Eurozone preliminary October HICP inflation is due during the European session. In the United States, traders will monitor ADP private employment data and the ISM services PMI. Market outlook: The dollar's immediate direction is being shaped by the US election result, bond yields and incoming economic data. Traders should avoid assuming that one session's move confirms a lasting trend. Sources: Reuters and FXStreet market reporting, November 4, 2026. Disclaimer: This article is for informational purposes only and does not constitute investment advice.