FX.co ★ Euro Rises as US Dollar Slides on Election Shock

The euro climbed to $1.124, its highest level since early October, as investors sold off the US dollar following a sweeping Democratic victory in the midterm elections that handed the party control of both chambers of Congress. The surprise political outcome pressured the dollar, while AI stocks and cryptocurrencies also declined on fears of stricter regulatory oversight. At the same time, the euro has been buoyed by increasingly hawkish signals from European Central Bank policymakers. Although the ECB left interest rates on hold last week, officials indicated that further hikes may still be required to contain inflationary pressures and prevent them from spilling over into wages, bolstering expectations of a more restrictive monetary policy stance.