DXY slips to two-week low as shutdown nears end – DBS
|The US Dollar (USD) weakened further, with the Dollar Index (DXY) falling 0.2% to 99.4 – its lowest since late October – as hopes grow that the US government shutdown will soon end. Investors remain cautious ahead of fresh data releases, fearing signs of lost economic momentum, DBS' Senior FX Strategist Philip Wee notes.
Markets eye house vote on US funding bill
"The Dollar Index (DXY) depreciated by 0.2% to 99.4, its weakest level since October 29. The end of the US government shutdown is in sight. The Senate bill to fund the government until January 30, 2026, has been referred to the House of Representatives for a vote, which is expected to take place as early as today, before being sent to President Donald Trump for signing."
"Markets remain uneasy about the return of US data releases once the shutdown ends, fearing that the US economy has lost momentum. The ADP report has set a cautious tone showing private sector employers shedding an average of 11,250 jobs per week in the four weeks in October. The futures market maintained a two-thirds chance of the Fed lowering rates at the FOMC meeting."
"If the DXY stays and extends its decline below 99.5, it has scope to return more of the past month’s gain from 97.5 to 100.4."
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