Dollar stabilizes after midterm election turbulence: strategists say core support remains, options market signals bullish sentiment.

Zhitong Finance APP has learned that foreign exchange strategists say that although the U.S. midterm election results briefly weighed on the dollar, the factors that have driven the dollar higher in recent months have remained largely unchanged. The Bloomberg Dollar Spot Index fell on Wednesday as traders weighed the impact of policy gridlock in Washington after Democrats won control of Congress. However, the index held steady on Thursday even as U.S. stocks fell; it is currently less than 1% below the near-18-month intraday high reached in October. In addition, the options market shows that traders expect the dollar to rise before the end of the year.