FX.co ★ Dollar Stabilizes Amid US Government Shutdown

The dollar index remained stable at approximately 97.8 on Wednesday after experiencing losses over the past three sessions. This stability comes as investors assess the implications of the first US federal government shutdown in nearly seven years, while also anticipating significant economic data due later today. The shutdown resulted from a deadlock between Democrats and Republicans, who were unable to agree on a temporary funding bill. Democrats have insisted that any agreement must include an extension of the expiring Obamacare subsidies. This standoff is expected to furlough around 750,000 federal employees, leading to an estimated $400 million in lost wages daily, according to the Congressional Budget Office. Essential government services are likely to face suspensions, notably including the much-awaited jobs report originally scheduled for Friday. Given the probable delay of the official report, traders are increasingly focusing on the ADP employment data, set to be released later today, for insights into the US labor market.