FX.co ★ Dollar Holds Decline as Govt Shutdown Looms

The dollar index steadied near 97.8 on Wednesday, following a decline over the past three sessions. This dip is primarily attributed to growing concerns regarding a possible government shutdown in the United States, which has impacted market sentiment. The shutdown is set to commence at midnight unless Congress can agree on a temporary funding deal, with both Republicans and Democrats locked in a blame game over the stalemate. Market participants are particularly attentive to the potential duration of the shutdown, as an extended closure could postpone critical data releases ahead of the Federal Reserve's policy meeting scheduled for late October. Among these data sets is Friday's anticipated nonfarm payroll report. Thus, ADP's private payroll figures, due out later today, carry additional significance. On Tuesday, the dollar experienced further pressure due to mixed JOLTS data, which revealed a modest increase in job openings but indicated weaker hiring in August, suggesting a cooling in the labor market.