Sterling rose 0.60% against the dollar to $1.3495 and the euro gained 0.63% to $1.1262 as of 05:25 ET, as the dollar weakened after Democrats swept both chambers of Congress in the U.S. midterms, winning at least 232 House seats and 54 Senate seats and flipping seven Senate seats. ING's Chris Turner said the dollar index's overnight low of 101.25 looks to be an important support level that may hold into the October jobs report. Eurozone inflation accelerated to 4% in October from 3.8% in September, driven by a 20.8% rise in energy costs, while core inflation held at 2.5%, in line with forecasts.
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Related tickers and likely impact
DXY
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 11/03/2026 | 101.86 |
| Change that session | +0.06% |
GBP/USD
▲ Likely positiveRelevance: medium
| Market | Currencies |
|---|---|
| Close on 11/03/2026 | 1.34151 |
| Change that session | +0.06% |
EUR/USD
▲ Likely positiveRelevance: low
| Market | Currencies |
|---|---|
| Close on 11/03/2026 | 1.11919 |
| Change that session | +0.04% |
USD/JPY
▼ Likely negativeRelevance: low
| Market | Currencies |
|---|---|
| Close on 11/03/2026 | 158.713 |
| Change that session | +0.47% |
XAU/USD
▲ Likely positiveRelevance: low
| Market | Gold |
|---|---|
| Close on 11/03/2026 | 3,930.22 |
| Change that session | -0.42% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- US Dollar Price Forecast: DXY Eyes 102.40, Can EUR/USD and GBP/USD Break Resistance?
U.S. September inflation came in hotter than expected, briefly lifting the odds of an October FOMC hike to 50%, but officials said there was no urgency to tighten at the next meeting, and the fed funds rate is still expected to stay at 3.75%-4.00% after the October 27-28 meeting. Treasury yields fell to 3-week lows, with the 10-year at 5.0933% and the 30-year at 5.4462%, which the article links to a flight to safety. In France, EU-harmonized inflation rose to 3.4% in September from 2.6% in August, the highest since January 2024, adding to eurozone price concerns. UK GDP unexpectedly rose 0.1% in August, lifting annual growth to 2.1%, and markets expect a 25-basis-point BoE hike on November 5. The DXY, near 102.15, has bounced from 101.93 support but is capped by 102.39 resistance.
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The European Central Bank's daily reference rate put the euro at 0.83825 pounds on 21 October, down from 0.84028 the previous day, a decline of about 0.24%; the figure is a once-daily value, not a live rate. The move came as UK annual CPI inflation rose to 3.5% in September from 3.1% in August, with motor fuel prices up 29.8% year on year and core CPI at 2.8%. FXStreet reported EUR/GBP near 0.8390 in early European trading and said a Bank of England rate increase at its next meeting was widely expected, though those intraday observations come from a different time. The BoE held Bank Rate at 3.75% at its September meeting, with Megan Greene, Catherine Mann and Huw Pill preferring a rise to 4%, and its next decision is due on 5 November.
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GBP/EUR spiked to fresh 16-month highs just above 1.19 after violent French protests triggered euro selling, before easing to around 1.1880. Consensus expects UK headline inflation to rise to 3.4% from 3.1% and core inflation to 2.8% from 2.6%, and strong expectations point to a Bank of England rate increase to 4.00% at its November meeting. Bank of America's Sonali Punhani argues the bigger pickup in inflation is still ahead, while weaker-than-expected data would raise doubts about a hike. Deutsche Bank, ING and MUFG highlight France's political and fiscal risks, with MUFG noting that the probability of RN leader Le Pen becoming president has risen to around 48% on Polymarket and expecting these risks to weigh on the euro into next year. Investors are also watching the UK jobs report on Tuesday and inflation data on Wednesday.
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