The dollar slips against the euro while traders eye the ISM manufacturing PMI and midterm election risk on Monday.

The US dollar lost ground against most major currencies on Monday, with the euro posting the biggest gain. A brighter risk appetite early in the week helped push the USD Index below the 102.00 level, while US stock futures rose between 0.4% and 0.9% and the 10‑year Treasury yield stayed under 5%.

Key data and political backdrop

• The Institute for Supply Management will release the October manufacturing PMI later in the day, a focal point for the US economic calendar.
• Midterm elections are scheduled for Tuesday, adding a layer of uncertainty to dollar positioning.
• ING warns that traders may unwind net‑long USD positions ahead of the vote, especially if a Democratic sweep materialises, which could raise concerns about a government shutdown or debt‑ceiling gridlock.

Currency moves

• EUR/USD rose toward 1.1200 as the dollar weakened, supported by weaker German retail sales that fell 2% in September versus expectations for a 0.4% rise.
• GBP/USD held above 1.3400, buoyed by three straight days of gains and an upcoming Bank of England policy decision on Thursday.
• USD/JPY ticked up but remained under the 158.00 mark, with Japanese Finance Minister Satsuki Katayama reaffirming joint FX monitoring with the United States.

What traders are watching next

• The October ISM manufacturing PMI for clues on US economic momentum.
• US midterm election outcomes and any shift in market expectations for a Democratic sweep.
• Further comments from central bankers and the upcoming BoE policy announcement.

Related news

• Australian dollar dips further amid mixed data with RBA decision in focus
• DXY slides to 101.75 as Iran talks lift safe‑haven demand
• Aud/usd holds above 0.7000; 100‑day ema key ahead of rba decision
• Silver price edges higher at $50, eyes next resistance

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This article is compiled from international market news for information only. It is not investment advice.