[MARKET ANALYSIS] Dollar remains subdued following the drop in yields and slump in oil post-Midterms

DXY: -0.2% Dollar remains subdued alongside lower yields and the recent drop in oil following the Democratic sweep in the US midterm elections, while implications from the decisive Democratic win include the prospects of a sooner end to the Iran conflict, but also policy uncertainty after Trump had previously touted that he would become "Mr Veto". In terms of the recent data, ISM Services fell more than expected, although the internals were mixed as business activity and new orders declined, but employment rose, and the price index fell, while the next key events stateside include the US jobs report and comments from Fed's Williams on Friday. EUR/USD: +0.2% Mildly gained on the back of a softer dollar, while there were comments from ECB's Kazaks that there may be a gradual increase in interest rates, and the Netherlands nominated Knot for the role of ECB President. GBP/USD: +0.2% Edges closer towards a retest of resistance around the 1.3500 level, and with participants looking ahead to today's BoE rate decision, with money markets pricing a 95% likelihood of a 25bps hike. USD/JPY: -0.3% Retreated amid the softer buck and with the yen getting some mild tailwinds from lower oil prices. Antipodeans: AUD/USD +0.3% / NZD/USD +0.5% Benefited from the weaker buck, and as the overall mixed overnight sentiment gradually improved.