Institutional View: A Democratic sweep of both chambers of Congress would pose short-term downside risks to the U.S. dollar

ING Bank noted on November 3 that the U.S. dollar could face short-term weakening pressure if Democrats win control of both the House of Representatives and the Senate in Tuesday’s U.S. midterm elections. Strategists Francesco Pesole and others stated in a report: “Democratic control of both chambers would exert some short-term pressure on the dollar.” They elaborated, “Markets have already fully priced in the expectation of Republicans losing control of the House, but only partially priced in a full Democratic sweep of both chambers.”