Investors Could Unwind Bets For Stronger Dollar Ahead of Midterms -- Market Talk

1016 GMT - The dollar's biggest risk Friday is the potential for investors to unwind bets on the currency strengthening ahead of Tuesday's U.S. midterm elections, ING's Francesco Pesole says in a note. A Democratic sweep is trading around 68% in prediction markets and that could be seen as negative for the dollar from a few angles, he says. That includes the higher risk of a government shutdown and gridlock on debt ceiling negotiations along with potential damage to already shaky AI-related sentiment, he says. The DXY dollar index falls 0.4% to 101.684 as fresh AI concerns trigger safe-haven buying in Treasurys. However, whenever tech stocks don't dominate headlines, the dollar has no trouble attracting buyers, Pesole says. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

October 30, 2026 06:16 ET (10:16 GMT)