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Session Recap: What if? Draghi & ECB; Dollar king and jobs report

FXStreet (San Francisco) - The dollar advanced against its major competitors on Wednesday as investors welcomed the victory of the Republican Party in the midterm elections in the United States, a good ADP employment report and rumors about Draghi being challenged by national central bankers just before the ECB meeting.

"What will ECB President Mario Draghi do on November 6?" Adam Button from ForexLive asked in a recent report. He also answered that "one thing he could do is resign." Button recalled the Reuters report saying that the national central bankers of the euro area are expected to challenge Draghi on his leadership style. The Euro remains depressed, especially after the news.

On the fundamental area, ADP reported good numbers of private employment in October and investors assumed that nonfarm payrolls Friday will offer a higher number than previously predicted. Meanwhile, Wall Street digested the victory of the Republican Party and its consequences in the investing market. Stocks and oil rose while gold posted declines.

The EUR/USD fell for a fifth day out of the last six as the pair dropped below the 1.2500 area and closed at 1.2485. "Technically, the short term picture shows a strong bearish tone coming from both 1 and 4 hours chart, as indicators aim higher near oversold territory, while 20 SMAs extend their bearish slopes above current price," FXStreet chief analyst Valeria Bednarik commented in a recent report.

"At this point a break through mentioned year low of 1.2440 is required to confirm next leg south towards 1.2370, strong static support level," bednarik added.

USD/JPY advanced for a sixth day out of the last sevent as the pair climbed near to 115.00. Currently the pair is closing at 114.65.

Main headlines in the American session

ADP employment climbs the most since June, USD unimpressed

United States Markit Services PMI down to 57.1 in October from previous 58.9

US: ISM Non-Manufacturing PMI drops to 57.1 in October

EUR/USD stuck to 1.25? options and futures say so

US Stocks: Dow and S&P close at record highs but Nasdaq declines

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