Gold has had another massive selloff overnight as two big events converged to spark another rally for USD against pretty much everything. First, midterm elections results showed the Republicans gaining control of the senate and keeping control of the house. The street viewed this result to mean a mandate for more business friendly policies to come from the government, or at least that policies unfriendly to business could be blocked. This sentiment also helped to boost US indices overnight along with USD. Second, there was more dovish talk out of the Bank of Japan with Governor Kuroda saying the central bank would do “whatever it takes” to ward off deflation and reiterated he still expect to hit the 2.0% inflation target within two years. This drove JPY sharply lower again relative to most other majors. The dovish Bank of Japan and soft Eurozone retail sales have increased pressure on the ECB to ramp up its own asset purchase program or find other ways to introduce more stimulus at its meeting tomorrow. European indices are climbing today on speculation that a more aggressively dovish ECB could be on the way. The big rally in USD has put broad based pressure on metal prices, with copper, silver and platinum all following gold off a cliff today. Reports suggesting some ETF holdings of gold have fallen to their lowest levels since 2008, however, suggest that a big washout could be underway. On the interim, falling metal prices have ripped the rug out from under AUD overnight dragging NZD down in tandem despite a positive NZ employment report.On the other hand, with crude oil stabilizing and WTI holding $77.00, the oil-sensitive NOK and CAD have stabilized this morning. Since 8:00 am, the Dow has levelled off, while USD has started to give back some of its overnight gains. The ADP payrolls report was positive, coming in for an eighth straight month above 200K (including revision) and beating the street. The 230K increase was not enough of a positive surprise to push markets even further with expectations already running high and we may be seeing some profit-taking against the news. With service PMI reports for the US due later this morning, ECB and Bank of England meetings tomorrow and North American employment reports on Friday, trading may remain active, presenting potential opportunities for both sides right through to the weekend. Economic News Economic reports released overnight and this morning include: US ADP private sector payrolls 230K vs street 220K vs previous 225K revised up from 213K UK shop prices (1.9%) vs street (1.7%) Sweden industrial production (4.3%) vs street (2.0%) Sweden service production 4.3% vs previous 2.3% Eurozone retail sales 0.6% vs street 1.4% Japan monetary base ¥259.5T vs previous ¥252.6T NZ Q3 unemployment rate 5.4% vs street 5.5% NZ Q3 employment change 0.8% over quarter vs street 0.6% NZ Q3 average hourly earnings 1.4% vs street 1.1% Service PMI reports: China HSBC 52.9 vs previous 53.5 Japan 48.7 vs previous 52.5 Australia 43.6 vs previous 45.4 India 50.0 vs previous 51.6 UK 56.2 vs street 58.5 Germany 54.4 vs street 54.8 Eurozone 52.3 vs street 52.4 Sweden 57.7 vs previous 55.6 Spain 55.9 vs street 55.3 Italy 50.8 vs street 49.4 France 48.3 vs street 48.1 Brazil 48.2 vs previous 51.2 Economic reports due later today include: 9:45 am EST US Markit service PMI street 57.1 10:00 am EST US ISM non-manufacturing PMI street 58.0 10:30 am EST US crude oil inventory street 2.3 mmbbls FOMC members Kocherlakota and Lacker speaking in the morning