The US dollar weakened slightly on Monday as investors prepared for a busy week featuring the US midterm elections and key central bank rate decisions in Britain, Australia, Norway, and Sweden. The euro gained 0.5% to $1.1212, despite Fitch downgrading France's outlook to 'negative.' Sterling and the yen also saw minor movements, while the Australian dollar dipped ahead of an expected rate hike.
In cryptocurrencies, bitcoin and ether recovered modestly after last week's record $6.3 billion heist at Binance. Bitcoin rose 0.2% to $77,976.98, while ether climbed 1.3% to $2,291.57. Binance customers withdrew $3.64 billion from the exchange, but analysts noted that the outflows did not trigger widespread panic.
Traders also monitored developments in the Middle East, where hopes for a diplomatic resolution to the US-Iran conflict pushed Brent crude futures down 3.9%. 'Risk is more on, the oil price is down and so it's slightly more risk-friendly, slightly more dollar negative,' said Kit Juckes, head of FX strategy at Societe Generale.
The US midterm elections, set for Tuesday, could shift control of Congress, with Democrats favored to win the House but the Senate outcome uncertain. Additionally, October US jobs data is expected later in the week.