FX.co ★ Dollar Slides for Second Session

The dollar index declined to approximately 98 on Monday, marking its second consecutive session of losses. This drop is attributed to concerns about a potential US government shutdown, which has negatively impacted investor sentiment. As the fiscal year draws to a close on Tuesday, parts of the government could cease operations on Wednesday if Congress does not pass a funding bill. However, President Donald Trump plans to meet with congressional leaders later today in an effort to prevent the shutdown. Investors are also focusing on key economic data scheduled for release this week, including September’s nonfarm payrolls report, job openings data, private payroll figures, and the ISM manufacturing PMI. Last week’s robust US economic data has lessened expectations for significant Federal Reserve rate cuts, with markets now anticipating roughly 40 basis points of easing by the year's end. The US dollar experienced broad weakening, with the most notable declines against the euro, British pound, and Japanese yen.