EUR/USD tumbles to lows near 1.1050
The buying pressure around the greenback is now dragging EUR/USD to the lower bound of the range near 1.1050.The pair shed almost a cent since last week?s tops in the mid-1.1100s following a wave of buying interest around USD after the FBI said it will not charge Democratic candidate Hillary Clinton over the recent emails scandal.Spot has quickly given away part of the recent and strong advance, retreating towards the area of 3-day lows in the 1.1055/50 band following the opening bell in the Old Continent.In the meantime, the US presidential elections are expected to dictate the sentiment in the global markets in the next 48 hours, with the preference of the voters slightly tilted towards Clinton.Data wise in Euroland, German Factory Orders have contracted at a seasonally adjusted 0.6% MoM in September, while EMU?s Retail Sales and the Sentix index are due later in the morning. Across the pond, the Fed?s Labor Market Conditions Index is only due.Additionally, EUR speculative net shorts have increased to the highest level since mid-January at over 137K contracts during the week ended on November 1, according to the latest CFTC report.The pair is now down 0.73% at 1.1060 with the immediate support at 1.0850 (low Oct.25) followed by 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5). On the flip side, a breakout of 1.1146 (high Nov.4) would target 1.1186 (200-day sma) and then 1.1191 (6-month resistance line).

GBP/USD sinks further, breaches 1.2400
GBP/USD is testing the area of 2-day lows in the 1.2400 neighbourhood following a solid demand for the US dollar.The pair has reverted the upside to fresh tops above 1.2500 the figure seen last week following a renewed interest surrounding the buck.In fact, the recent news that the FBI will not take any actions against Democratic candidate H.Clinton over the handling of classified information has given fresh oxygen to USD and triggered a sell off in the risk-associated space.Recall that GBP has been boosted in past session following positive results from the UK docket but particularly after the UK High Court ruled that the Parliament must approve the triggering of Article 50 and any government plans to leave the European Union, all mitigating fears of a hard Brexit.Furthermore, speculators? net shorts in GBP have decreased to 6-week lows while Open Interest remained somewhat sidelined, all during the week ended on November 1 and according to the latest CFTC report.As of writing the pair is losing 0.95% at 1.2398 facing the next support at 1.2279 (20-day sma) followed by 1.2086 (low Oct.11) and finally 1.1450 (low post-?flash crash? Oct.7). On the flip side, a breakout of recent high at 1.2559 (high Nov.4) would open the door to 1.2756 (55-day sma) and then 1.2968 (100-day sma).

USD/CAD firmer, approaches 1.3400
The better tone in the buck is now helping USD/CAD to advance to the vicinity of the 1.3400 handle.Spot is posting marginal losses ahead of the European opening bell although it continues to recover from overnight lows in the 1.3340 region.Crude oil prices are strongly rebounding as well, lifting the barrel of West Texas Intermediate to the area of $44.70 and lending extra legs to CAD at the same time.USD has found its buying interest renewed after the FBI said it will take no action against Democratic candidate H.Clinton over emails, prompting investors to re-position in the greenback.In the meantime, the US political scenario will dominate the headlines in the near term as presidential election are due tomorrow and with consensus still divided on the potential outcome.In addition, according to the latest CFTC report, CAD speculative net shorts have climbed to the highest level since late March during the week ended on November 1, while Open Interest clinched 6-week tops.As of writing the pair is losing 0.08% at 1.3392 facing the next up barrier at 1.3466 (high Nov.4) followed by 1.3575 (50% Fibo of the 2016 drop) and finally 1.3839 (61.8% Fibo of the 2016 drop). On the other hand, a break below 1.3303 (20-day sma) would aim for 1.3174 (55-day sma) and then 1.3002 (low Oct.19).

USD/JPY targets 107.49 longer term Commerzbank
In opinion of Karen Jones, Head of FICC Technical Analysis at Commerzbank, the pair could test the mid-107.00s in the longer run.?USD/JPY last week sold off to and is seeing a strong rebound from the 55 day ma at 102.74, this has been enough to cast attention back to the 105.55 May low. Longer term we suspect that the market is basing and we target the 107.49 July high and the 200 day ma at 106.80 at this stage. The base would offer an additional upside measured target to approximately 109.50?.?Below 102.55 (last weeks low) we would look for the market sell off to the base of the cloud at 101.81. Could the sell off reach lower towards the 100.41 5 month support line? We cannot rule this out at this point (although this is not our favoured scenario)?.

USD/CHF nears 0.9800 as USD
A renewed bout of buying interest is seen behind the US dollar in the European session, sending USD/CHF back towards 0.98 handle.Currently, the USD/CHF pair rallies 1% to 0.9780, flirting with daily highs reached at 0.9782 last minutes. The USD/CHF pair found renewed bids near 200-DMA and from there the bullish run gathered steam once again, in response to aggressive broad USD buying as risk-on persists at full steam in Europe.The European equities rally 1.30% to +1.90%, with the resource-heavy FTSE rejoicing higher oil and copper prices, while, the USD index rockets +0.83% to fresh 3-day highs of 97.74.Adding to the weakness in the CHF, the Swiss CPI data fell short of expectations in Oct, showing no growth from +0.1% reading seen in Sept. Later today, markets will find fresh impetus from the US LMCI data ahead of the US elections due tomorrow.To the upside, the next resistance is located at 0.9800/03 (round figure/ 20-DMA) and above which it could extend gains to 0.9850 (psychological levels) and 0.9903 (Nov 1 high) next. To the downside, immediate support might be located at 0.9730 (5-DMA/ daily S1) and below that 0.9691 (daily S3) and from there to 0.9635 (Sept lows).

NFP report supports Fed rate hike in December - MUFG
Lee Hardman, Currency Analyst at MUFG, notes that the release on Friday of the latest non-farm payrolls report had limited initial impact on the foreign exchange market dampened by heightened election uncertainty.?Nevertheless it was a solid report which revealed further evidence of a tighter labour market.The tightening labour market is contributing to slower employment growth although it remains healthy having increased by 161k in October and 181k per month so far this year. In comparison employment growth averaged 219k per month in the same period of last year. There was also clearer evidence that the tightening labour market is resulting in higher wage growth. The annual rate of average hourly earnings growth accelerated to a new cyclical high of 2.8% in October which marks a clear pick up from the more subdued rate of closer to 2.0% which persisted following the global financial crisis between 2010 and 2014.Fed Vice Chair Fischer has since acknowledged that recent US economic data has strengthened the case for resuming rate hikes as he believes the Fed is pretty close to meeting both parts of its mandate. He added to speculation as well that the Fed could allow the US economy to run a little hot stating that the economy could ?to some extent exceed our employment and inflation targets?. Back in February he had stated that the Fed wants to see wage growth of 3% which is now close to being fulfilled.Overall, a December rate hike appears close to a done deal if Hillary Clinton is elected President which would encourage a stronger US dollar heading into year end. Donald Trump becoming President is the main risk to a December rate.?

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