Dollar Steadies Ahead of Midterm Elections

2026-11-03 02:35 By Jam Kaimo Samonte 1 min. read

The US dollar index steadied around 101.8 on Tuesday after facing heightened volatility in the previous session, as investors turned cautious ahead of the US midterm elections.

Prediction markets currently indicate a 74% probability of the Democratic Party gaining control of the US Senate, as President Donald Trump and the Republican Party face growing political pressure over elevated energy prices linked to the Iran conflict.

Investors are also awaiting the closely watched US jobs report due later this week, which could provide fresh insight into labor market conditions and influence expectations for Federal Reserve monetary policy.

Markets are currently pricing in roughly a 73% chance of a Fed rate hike in December, following a pause in October.

Meanwhile, developments in the Middle East continued to influence currency markets, with falling oil prices amid signs of diplomatic progress between the US and Iran reducing demand for the dollar as a safe-haven asset.



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Dollar Steadies Ahead of Midterm Elections
The US dollar index steadied around 101.8 on Tuesday after facing heightened volatility in the previous session, as investors turned cautious ahead of the US midterm elections. Prediction markets currently indicate a 74% probability of the Democratic Party gaining control of the US Senate, as President Donald Trump and the Republican Party face growing political pressure over elevated energy prices linked to the Iran conflict. Investors are also awaiting the closely watched US jobs report due later this week, which could provide fresh insight into labor market conditions and influence expectations for Federal Reserve monetary policy. Markets are currently pricing in roughly a 73% chance of a Fed rate hike in December, following a pause in October. Meanwhile, developments in the Middle East continued to influence currency markets, with falling oil prices amid signs of diplomatic progress between the US and Iran reducing demand for the dollar as a safe-haven asset.
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