FX.co ★ Dollar Rises Amid Concerns Over US Government Shutdown

The dollar index, after initial declines, rose to 98 on Thursday, breaking a four-day losing streak. This shift occurred as investors assessed the economic impact stemming from the US government shutdown. In a strategic move to break the funding impasse that began yesterday, President Trump threatened significant federal job cuts to exert pressure on Democrats. This political standoff has already caused the delay of the weekly jobless claims report, and it is anticipated that tomorrow's nonfarm payrolls report might also face delays. Despite challenges, Challenger, Gray & Christmas reported a decline in job cuts for September; however, the cumulative total for the year remains the highest since 2020. Concurrently, money markets are almost fully anticipating a quarter-point interest rate cut by the Federal Reserve this month, with an 80% likelihood of an additional cut in December. The US dollar showed strength, particularly against the euro, pound, and Canadian dollar.