This week's focus will be on the US mid-term elections on Tuesday. Economists at Société Générale expect equities to go up if the Republicans win control of both the Senate and the House.

Victory for the GOP could have negative ramifications for the Euro

“The US midterms could have an important say on equities and by extension high beta currencies. If history is a guide, US stocks tend to do well if the Republicans win control of both the Senate and the House.” 

“Victory for the GOP could have negative ramifications however for the Euro if Washington decides to whittle back financial/ military support for Ukraine.”

“If stocks can hold their ground/stretch gains on a Republican victory in Congress tomorrow with control of Senate and the House, then the Dollar may well have reached a turning point, with carry staging a tentative return.”