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Dollar Little Changed After Recovering From Early Weakness

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The dollar got off to a weak start against its major rivals Wednesday, but has since staged a bit of a recovery. The currency is turning in a mixed performance this afternoon, but remains little changed overall.

The early weakness was due to the results of yesterday's midterm elections. As expected, the Democrats regained control of the House of Representatives and the Republicans maintained their hold over the Senate.

Traders will now shift their focus to tomorrow's announcement from the Federal Reserve. The central bank is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.

The dollar dropped to a low of $1.1499 against the Euro Wednesday morning, but has since rebounded to around $1.1445.

Euro area retail sales were unchanged in September after growing in the previous month, preliminary data from Eurostat showed on Wednesday. Retail sales were flat on the month, while economists were looking for a modest 0.1 percent gain.

Germany's industrial production unexpectedly rose for a second straight month in September, adding to the positive sentiment provided by the orders data released earlier.

Production grew a calendar and seasonally adjusted 0.2 percent from the previous month, preliminary figures from the Federal Statistical Office showed on Wednesday. Economists had forecast a 0.1 percent decline.

German construction activity declined for the first time since March during October, survey data from IHS Markit showed on Wednesday. The construction Purchasing Managers' Index fell to 49.8 from 50.2 in September. A score below 50 suggests contraction in the sector.

The buck fell to an early low of $1.3174 against the pound sterling Wednesday, but has since bounced back to around $1.3135.

UK house price inflation eased sharply in October to its lowest level since March 2013, survey data from IHS Markit and Lloyds Banking Group unit Halifax showed on Wednesday. The Halifax house price index rose 1.5 percent year-on-year in the three months to October, which was sharply slower than the 2.5 percent increase in September. Economists had forecast a 1.3 percent climb.

The greenback slid to a low of Y112.946 against the Japanese Yen Wednesday, but has since rebounded to around Y113.435.

Japan's leading index eased in September after climbing in the previous month, preliminary data from the Cabinet Office showed on Wednesday. The composite leading index dropped to 103.9 from 104.5 in August. The reading matched economists' expectations.

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