Euro Strengthens Toward 1.1250 as US Dollar Retreats on Midterm Election Results

EUR/USD traded higher toward the 1.1235–1.1250 resistance zone as the US Dollar retreated following US midterm election outcomes pointing to Democratic gains. Early vote counts showed Democrats leading 45 seats to 35, before projections indicated majorities in both Congressional chambers, fueling expectations of constrained fiscal spending. The US Dollar Index fell as low as 101.25 and stood around 101.34–101.55. Additional support for the euro came from hawkish remarks by ECB policymaker Joachim Nagel, who noted a December interest rate hike remains highly probable.