Breaking: Democrats win both House and the Senate
The Democrats win a majority in both the US Senate and House of Representatives on Tuesday, taking control from Republicans.
Democrats have seized control of the US Senate, according to the Associated Press. With historic wins in Texas, Iowa, Kansas and South Carolina, the party now has 54 seats. 51 seats are needed to to win the upper chamber of Congress.
In the House of Representatives, all 435 seats are up for election. 218 seats are required to build a majority. According to live data from the Decision Desk HQ, election results have been called in 372 of the 435 seats in the US House of Representatives, with Democrats securing 231 seats and Republicans winning 141.
US President Donald Trump said in an interview with the New York Times on Tuesday that he was willing to accept the results of the midterm elections and was prepared to work with Democrats.
Traders anticipate more friction for Artificial Intelligence (AI) and data centre investment, as well as potential political deadlock and prolonged negotiations over the debt ceiling and fiscal policy should Democrats gain control of Congress.
Key quotes from Trump
Democrats will send insane measures and I will veto them.
Part of outcome related to Iran.
People likely unwilling to accept short-term gasoline price impact.
Democrats performed well.
I could collaborate with Democrats on many issues.
I can cooperate with Democrats on immigration.
I don't expect to alter cabinet.
I will accept election outcome.
I don’t regret initiating the Iran conflict earlier this year.
No plans to alter personnel in his administration, backs Pete Hegseth.
Market reaction
US Dollar Index (DXY) remains under selling pressure following this headline. At the time of writing, the DXY is down 0.34% on the day at 101.51. US Stock futures dropped on Wednesday, with S&P 500 futures trading 0.38% lower to around 7,568 and Nasdaq futures falling 0.50% to around 28,155, with technology bearing the brunt of the selling.
US Treasury yields fell across the curve as the results emerged, with the 5-year Treasury yields dropping as much as nine basis points (bps) to 4.68%. Benchmark 10-year yields were down two bps to 4.929%.
US Dollar Price This week
The table below shows the percentage change of US Dollar (USD) against listed major currencies this week. US Dollar was the weakest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.66% | -0.51% | 0.40% | 0.00% | 0.69% | 0.47% | -0.78% | |
| EUR | 0.66% | 0.13% | 1.01% | 0.64% | 1.28% | 1.11% | -0.15% | |
| GBP | 0.51% | -0.13% | 0.72% | 0.52% | 1.15% | 0.98% | -0.27% | |
| JPY | -0.40% | -1.01% | -0.72% | -0.35% | 0.29% | 0.01% | -1.26% | |
| CAD | -0.00% | -0.64% | -0.52% | 0.35% | 0.67% | 0.37% | -0.80% | |
| AUD | -0.69% | -1.28% | -1.15% | -0.29% | -0.67% | -0.17% | -1.40% | |
| NZD | -0.47% | -1.11% | -0.98% | -0.01% | -0.37% | 0.17% | -1.31% | |
| CHF | 0.78% | 0.15% | 0.27% | 1.26% | 0.80% | 1.40% | 1.31% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).
US midterm elections FAQs
The US midterm elections are the federal elections held halfway through a president's four-year term. Voters choose all 435 members of the House of Representatives, about one-third of the Senate, and, in many states, governors and other state and local officials.
Election Day is Tuesday, November 3, 2026. Federal law sets it as the Tuesday after the first Monday in November. Early voting and mail voting are already under way in many states.
They decide which party controls each chamber of Congress for the last two years of President Donald Trump's term. The majority party sets the legislative agenda, chooses committee leaders and, in the Senate, controls confirmations of judges and senior officials.
No. The president is elected every four years; the next presidential election is in November 2028. Midterms are often seen as a referendum on the sitting president's party, which historically tends to lose House seats.
Most analysts expect a modest, short-lived reaction in the US Dollar rather than a lasting trend. A divided Congress is widely seen as the base case and is partly priced in. Treasury yields may react more noticeably to the results. Outcomes that raise expectations of fiscal stimulus tend to lift yields and the US Dollar, while gridlock that limits new spending can pull both lower. Political friction, such as funding or debt-ceiling standoffs, can also briefly lift the Dollar as a safe haven. Over six to twelve months, growth and Federal Reserve policy matter more than the vote.
US stocks have historically been weak before midterms and strong after them. Since 1950, the S&P 500 has been higher 12 months after every midterm election, 19 out of 19, with an average gain of about 15%. Analysts link the pattern to uncertainty fading once results are known. Past performance does not guarantee future returns, and some strategists note that high valuations in 2026 could test the streak.
Markets have often welcomed a divided government because gridlock makes sweeping changes to taxes, spending and regulation less likely. Under a Republican president, the S&P 500 has historically done well in years following midterms that split control of Congress. The risks are funding deadlines, debt-ceiling fights and congressional investigations, which can add short-term volatility.
Author
Lallalit Srijandorn
FXStreet
Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.
