Markets turn cautious pending the results of the US mid-term elections. For one thing, volatility could increase once the results are clearer. On the other hand, one could argue that the topic is not important for the forex market.according to Commerzbank economists.
What really matters and what doesn’t
“The results of the mid-term elections in the US are beginning to arrive one by one and the dollar exchange rate is not moving. One could argue that it is the “calm before the storm” and conclude that the real volatility of the USD will increase once it becomes clear who will hold the majority in Congress.”
“Nevertheless, one could also conclude that the topic is of little interest to the foreign exchange market and that it was only discussed so intensively in a currency context because the writers had to fill in the gap until the next really big event for USD exchange rates (Thursday’s US inflation data).”
Source: Fx Street