The dollar regains traction and opened with gap-higher against its major counterparts at the beginning of election week. The FBI cleared Clinton in email review, saying that no criminal charges were warranted against Democrat Hillary Clinton for using a private email server for government work, while she was the secretary of state.
The announcement from FBI on Sunday lifted a cloud over Clinton’s campaign just two days before election. The news added on support to the dollar, which started to move higher on Friday, after US jobs data showed solid numbers despite missing to meet the forecast
The markets reacted on comments and dollar gapped higher on Monday’s opening, as recent uncertainty is fading and risk appetite is returning.
High volatility is expected in coming hours ahead of tomorrow’s U.S. election.

The greenback bounced from fresh lows, after being under strong pressure last week, in attempts to recover recent losses against the basket of majors.
The dollar index was up 0.36% in Asia, after opening with 0.42% gap-higher.
The Euro was 0.75% lower on Monday’s opening and returned to session lows at 1.1050 zone, after overnight’s recovery attempts stalled at 1.1100 area. Fresh weakness probes below strong technical supports at 1.1050 zone and break lower would trigger further retracement of last week’s rally.
British pound was among the biggest losers in early Monday, down 0.50% on opening and falling further 0.29% in Asia, after gaining 2.7% in strong recovery rally last week.
The dollar rallied strongly against Japanese yen and opened 0.93% higher on Monday, gaining further 0.43% in Asian trading. The dollar/yen retraced the largest part of last week’s losses, as investors turned their focus back to riskier assets.
Gold was lower on Monday on significantly lower demand for safe-haven assets. The yellow metal was down nearly 1% on Monday’s opening, with fresh acceleration lower in early European hours that followed limited recovery attempts overnight. Gold fell 0.39% from Monday’s opening, with signs of further easing on fresh strength of the dollar.
Asian Stock bounced on Monday on growing optimism over Clinton that boosted US dollar and shares. MSCI index advanced 0.8% in Asia, while top regional gainers were Australian and Japanese stocks with gains of 1.3% and 1.2%, respectively.
European stock markets followed positive sentiment from Asia, as major stock indexes opened with gap-higher on Monday and rallied further in early hours of European session.
German DAX was up 0.25% in early trading, after opening 2.12% higher on Monday.
FTSE100 opened 0.86% higher and advanced over 1% in early trading, showing so far the top performance among main European stock indexes in early Monday’s trading.
Highlights of the day
Europe
German Factory Orders fell in September to -0.6%, undershooting 0.3% forecast and well below downward revised Aug release at 0.9%, posting the steepest fall in five months.
Inflation in Switzerland remained unchanged at 0.1% in October, missing the forecast at 0.2%.

America
No releases from US today, with focus turning to elections.

Important levels
GBPUSD
Cable slid below 1.2400 handle on fresh bearish acceleration from last week’s peak at 1.2555, after Monday’s gap-lower opening. Weakness could extend to next strong support at 1.2330, as growing negative sentiment maintains downside pressure. Firm break below 1.2300 support would signal lower top at 1.2555.
Initial resistance lies at 1.2445, ahead of session high at 1.2496 and Friday’s intraday high at 1.2519.

EURUSD
The euro opened lower on Monday and resumes weakness after overnight’s recovery attempts were capped at 1.1100 zone. Strong technical support at 1.1045 has been reached so far, with next supports at 1.1029/00 being in near-term focus. Fresh dollar’s bullish sentiment could drive the pair further down, as technicals are giving strong bearish signal.
Immediate resistance lies at 1.1059, followed by 1.1088 and session high at 1.1109., Market Analysis