The euro gained against a broadly softer dollar on Wednesday as US equities rallied following the midterm elections and oil prices slid after President Donald Trump said the Iran war was partly responsible for the Republican Party losing control of Congress.

Treasury yields and oil slipped after a benign refunding announcement, while ADP payrolls estimate for October of 86K beat forecasts and ISM services data signaled continued growth. Jobs figures for last month are due on Friday.

The decline in yields was more muted in Europe after euro zone inflation climbed to a three-year high and optimism grew over improved ties with the US, including support for Ukraine.

European Union leaders aim to appoint a successor to European Central Bank President Christine Lagarde at their December 17 to 18 summit, a senior euro zone official said.

FX turnover was generally above recent averages, with Scandinavian currencies seeing the heaviest activity. The Swedish krona led G10 gains in the risk-on environment, while the Norwegian krone under performed as oil prices fell.

Vols fell across currencies and tenors, pricing in a lower risk of geopolitical and policy uncertainty following the US election results. One-month DXY vol fell to 5.58%, its lowest level in over a month.

EUR/USD climbed to a 21-session high of 1.1273 on broad USD selling before paring gains, keeping a bullish bias while above 1.1187.

GBP/USD climbed on broad post-midterm USD weakness, maintaining a bullish tone above 1.34 ahead of Thursday's Bank of England decision where a hike is expected.

USD/JPY eased back toward the 158.44 cloud top as upward momentum stalled, though the broader outlook remains constructive, with a break above the 200-DMA at 158.63 needed to re-energize bulls.

AUD/USD held above 0.7000 on broad USD weakness, with improving momentum indicators and bullish price action keeping the bias tilted higher.

Treasury yields were down 3 to 5 basis points. The 2s-10s curve fell about 2 basis points to +31.3bp.

The S&P 500 rose 1.74% with most sectors rising.

WTI oil slid 8% to a one-month low.

Gold rose 3.36% while copper gained 0.25%.

Heading toward the close: EUR/USD +0.22%, USD/JPY -0.19%, GBP/USD +0.36%, AUD/USD +0.54%, DXY -0.27%, EUR/JPY +0.05%, GBP/JPY +0.22%, AUD/JPY +0.42%.(Editing by Burton Frierson Robert Fullem is a Reuters market analyst. The views expressed are his own)