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AUD/USD flatlines near 0.6965 as less hawkish RBA counters USD weakness

AUD/USD holds steady above a two-week low, trading near 0.6965 in the Asian session on Wednesday as early midterm election results heighten political uncertainty and weigh heavily on the US Dollar. Moreover, reviving safe-haven demand triggers a fresh leg down in US bond yields, offsetting Fed hike bets and exerting additional pressure on the buck. However, a less hawkish RBA caps the Aussie.

USD/JPY declines below 158.00 as USD weakens on midterm election results

USD/JPY comes under heavy selling pressure on Wednesday, dropping below 158.00 during the Asian session as the US Dollar slumps to a one-month low amid heightened political uncertainty after early US midterm vote counts. Moreover, the prospect of gridlock in Washington drives safe-haven flows, triggering a fresh leg down in US bond yields and further weighing on the buck.

Gold ticks lower while early trend points to Democrats victory in House

Gold trades with caution at around $3,930 in the Asian trading session on Wednesday. The precious metal struggles to gain direction as investors shift their focus to United States Midterm elections where early trend shows that Democrats would have a clear majority in House of Representatives.

Bitcoin tests critical support, Ethereum struggles below resistance, XRP extends losses

Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) remain under pressure on Wednesday as bearish momentum continues to weigh on prices. BTC approaches key support around $76,466, and a decisive close below could open the door to deeper losses. Meanwhile, ETH struggles below key resistance while XRP faces rejection at the upper trendline of a falling channel pattern, all hinting at deeper losses.

LATEST NEWS

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DEEPER DIVE

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.

Warsh is cutting the Fed's rate meetings. Fewer decisions, bigger moves

Federal Reserve Chair Kevin Warsh will drop the interest rate vote from one Fed meeting a year in 2027 to two in 2028. More news will pile up before each remaining decision, so each should move rates and bond yields further. From the fall of 2027, the Fed will vote on interest rates at seven of its eight yearly meetings instead of all eight, and in 2028 at six.

The Fed can't fix this inflation. It's a mechanical weight, not a demand problem

Producer prices are rising 2.6 points faster than consumer prices, the widest gap since 2022, because most of the Iran war's costs haven't reached shoppers yet. The part that has is fuel, and rate hikes can't make fuel cheaper. The Producer Price Index (PPI), which tracks what US businesses get for the goods and services they sell, rose 6.3% through September.

CRYPTOCURRENCIES

Ripple clings to $1.25 support as Binance reserves hit five-year low

XRP bulls gather around $1.25, eyeing a short-term recovery attempt as the broader crypto market consolidates. Binance's XRP reserves fall sharply, reaching the lowest level since 2021 following the resumption of withdrawals on the exchange.

Crypto Today: Bitcoin, Ethereum, XRP under pressure as investors pull capital

Bitcoin trades downward at $76,566 on Tuesday, testing six-week lows. Ethereum, like Bitcoin, trades under pressure as it consolidates within a narrow support range. Meanwhile, Ripple hovers marginally above $1.25.

Bitcoin risks deeper losses as the 200-day EMA comes under pressure

Bitcoin slips toward the key support zone around $76,455 on Tuesday, after falling nearly 2% the previous day. The largest cryptocurrency by market capitalization nears a make-or-break level, with a daily close below $76,455 suggesting a deeper breakdown.

STOCKS

Strong iPhone sales fortify Apple's Q4 result

A robust fourth-quarter for Apple's (AAPL) iPhone sales helped the tech titan beat Wall Street's consensus on Monday. Apple reported $57.58 billion in iPhone sales in Q4, beating the average analyst estimate by more than a billion. However, AAPL stock shed close to 4% afterhours despite the top and bottom line beat.

Nasdaq 100 rebound looks strong… or is it just a trap?

The Nasdaq 100 spent the past few sessions recovering strongly from its November lows, rebounding from 24,307 and climbing back into the 25,100–25,150 mid-range zone. While the candles look convincing, the broader picture reveals a different story: the index remains trapped inside a 4H range structure.

WEEKLY FORECAST

EUR/USD: US President Donald Trump judgment day has come

The EUR/USD pair settled around 1.1160, down for the week and closing October with losses. The US Dollar (USD) advanced through the first half of the week but changed course after the Federal Reserve (Fed) monetary policy announcement, then fell further after the European Central Bank (ECB) reported the same decision. The Greenback regained some poise on Friday, as risk aversion took the lead.

European Central Bank faces 3-year-high inflation at 3.8%

The European Central Bank (ECB) faces a difficult monetary policy environment as Eurozone inflation reached 3.8% in September, its highest level in three years and almost twice the central bank's 2% target.

Gold: Bears dominate even as US yields push lower ahead of midterm election

Gold (XAU/USD) registered gains for the first three days of this week only to erase them in the second half and to drop to a fresh 2026-low below $3,900. Next week’s economic calendar will offer key macroeconomic data releases from the United States (US), which could trigger the next directional action in the precious metal.

Bitcoin: Binance security breach and hawkish Fed push BTC lower

Bitcoin (BTC) continues to weaken this week, down more than 3% and heading for its fourth straight weekly loss. The largest cryptocurrency by market capitalization is facing a bearish outlook, fueled by a hawkish Federal Reserve (Fed) outlook at the October meeting and a reported $6.3 billion hack at Binance, which is driving risk aversion and triggering heavy liquidations.

US Dollar: A hawkish Fed is no longer enough

The US Dollar (USD) managed to regain some composure, ending the week with acceptable gains after surrendering some ground following earlier two-week highs. Indeed, the US Dollar Index (DXY), at some point in the last few days, popped to as high as the 102.50 zone, just to lose some momentum soon afterwards despite keeping its weekly bullish mood well in place.

Week ahead – Central bank and earnings bonanza could roil markets

Fed, ECB and BoJ to sit on the sidelines after September hikes. But RBNZ and BoC poised to lift borrowing costs. Inflation data out of the US, Japan, Australia to also be important.

EDUCATION

How economic uncertainty changes bullion buying patterns across generations

When the economy becomes uncertain, investors react differently depending on their goals and circumstances. But, generally, periods of high inflation, market volatility, or geopolitical tension push investors to look beyond traditional assets for ways to diversify and manage uncertainty.

You’re watching pre-market levels wrong [Video]

If you trade NQ, you’ve probably been told to watch the pre-market high and pre-market low. That part is easy. The harder question is: what are you actually supposed to do when price gets there? Most traders react too quickly, and that’s usually where the trouble starts.

PRESS RELEASES

FP Trading Launches Mobile App Bringing TradingView-Powered FP Trader to iOS and Android

FP Trading has introduced a mobile app designed to make trading easier to reach and easier to manage.

Introducing the TradingPRO Learning Hub: Learn trading step by step

Every trader starts somewhere. For some, it is a first look at a price chart and a long list of unfamiliar terms. For others, it is years of experience and a wish to tighten up a few habits. Whatever your starting point, good education is what separates guessing from making informed decisions.

Velaris Markets prop challenges start at $29 for a $2,500 simulated account

Each service has its own terms; the prop service uses demo accounts and is not a brokerage service.

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