FX.co ★ Dollar Weakens for 4th Session as US Shutdown Hits Markets

The dollar index continued its downward trend for the fourth consecutive session on Wednesday, dropping to 97.6, amid a federal government shutdown in the US, the first since 2019. The duration of this shutdown remains uncertain, resulting from an impasse between Democrats and Republicans over a stopgap funding agreement. Democrats demanded any deal include a continuation of Obamacare subsidies nearing expiration. This political stalemate poses the risk of putting approximately 750,000 federal employees on furlough, incurring an estimated daily loss of $400 million in compensation, as reported by the Congressional Budget Office. Additionally, crucial government functions may be halted, such as the release of the much-anticipated jobs report set for Friday. With the official report probably delayed, traders are giving more importance to today's ADP employment data. On Tuesday, the JOLTS survey revealed job openings steady at 7.2 million, aligning with predictions and indicating stable labor demand.