The dollar and other major currencies remained in a tight range on Monday as traders focused on the upcoming US midterm elections and key economic data releases. The euro hovered near a 17-month low at $1.1159 in early Asian trade, pressured by Fitch's downgrade of France's outlook to 'negative' from 'stable'. Sterling held steady at $1.3387, while the dollar index stood at 101.94.
Bitcoin and Ether faced losses following a massive $6.3 billion security breach at Binance, the world's largest crypto exchange. The hack, linked to North Korean hackers by the FBI, triggered a wave of withdrawals totaling $3.64 billion, or 2.1% of Binance's assets. Despite the initial panic, Binance reported that withdrawals were stabilizing and deposit volumes remained strong.
Investors are bracing for a busy week ahead, with the US midterm elections, October jobs data, and central bank rate decisions in the UK, Australia, Norway, and Sweden. Analysts warn that hedge funds suffered significant losses in October, which could limit market reactions to election outcomes. Eric Robertsen of Standard Chartered noted the challenge of predicting election results, citing recent examples in Brazil and Israel where polling did not align with actual outcomes.
In cryptocurrency markets, Bitcoin rebounded slightly to $77,975.62 after hitting a six-week low on Friday, while Ether recovered to $2,268.42 following a two-month trough. Richard Forss of EXANTE highlighted the vulnerability in the crypto industry, stating that while blockchains are mathematically secure, the weakest point remains the trust in employees' laptops.