ING analyst Francesco Pesole said the main risk to the dollar on Friday is that investors may liquidate positions betting on dollar strength ahead of Tuesday's U.S. midterm elections. He said prediction markets assign about a 68% probability to a Democratic sweep, which could be dollar-negative by raising government shutdown risk, increasing the chance of a debt-ceiling stalemate, and further denting already fragile AI-driven market sentiment. Pesole added the dollar should still attract buyers

ING analyst Francesco Pesole said the main risk to the dollar on Friday is that investors may liquidate positions betting on dollar strength ahead of Tuesday's U.S. midterm elections. He said prediction markets assign about a 68% probability to a Democratic sweep, which could be dollar-negative by raising government shutdown risk, increasing the chance of a debt-ceiling stalemate, and further denting already fragile AI-driven market sentiment. Pesole added the dollar should still attract buyers if tech stocks stop dominating headlines.