07:48 AM EST, 11/06/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Wednesday after an apparent victory by Donald Trump in the presidential election, and before a light data schedule that will give markets time to watch Congressional election returns and prepare for Thursday's Federal Open Market Committee meeting announcement at the conclusion of its two-day meeting.

The dollar rose progressively overnight as it became more certain that Trump will return to the White House and that the Senate will return to a Republican majority. The balance in the House of Representatives is still undecided at this point.

The Mortgage Bankers Association said earlier Wednesday that mortgage rates rose further to their highest point since July in the week ended Nov. 1, resulting in a sixth consecutive weekly decline in mortgage applications.

The only remaining data release on Wednesday is weekly EIA oil stocks data at 10:30 am ET.

According to CME's FedWatch tool, there is currently a 97.4% chance of a 25 basis point rate reduction being priced in for Thursday's FOMC meeting announcement, putting the target range at 4.50% to 4.75%. The chance that the range will be unchanged at 4.75% to 5% is seen at 2.6%.

A quick summary of foreign exchange activity heading into Wednesday:

EUR/USD fell sharply to 1.0707 from 1.0926 at the Tuesday US close and 1.0901 at the same time Tuesday morning. The Eurozone's services purchasing managers' index rose slightly in October to indicate faster expansion while producer prices decline in September, data released earlier Wednesday showed. European Central Bank President Christine Lagarde is due to speak at 9:00 am ET, followed by ECB Vice President Luis de Guindos at 9:30 am ET. The next European Central Bank meeting is scheduled for Dec. 12.

GBP/USD fell to 1.2854 from 1.3027 at the Tuesday US close and 1.2992 at the same time Tuesday morning. UK construction PMI fell more than expected in October while passenger car registrations slowed in the same month, according to data released earlier Wednesday. The next Bank of England meeting is scheduled for Thursday, when a 25 basis point rate reduction is expected.

USD/JPY rose to 154.1713 from 151.5420 at the Tuesday US close and 152.1039 at the same time Tuesday morning. Japanese services PMI fell below the breakeven point in October while the Tankan index business conditions survey showed modest deterioration in November, according to data released overnight. The next Bank of Japan meeting is scheduled for Dec. 18-19.

USD/CAD rose to 1.3906 from 1.3838 at the Tuesday US close and 1.3882 at the same time Tuesday morning. The Canada IVEY PMI for October is due to be released at 10:00 am ET, followed by an appearance by Bank of Canada Senior Deputy Governor Carolyn Rogers at 12:25 pm ET. The next Bank of Canada meeting is scheduled for Dec. 11.