FX.co ★ Dollar Extends Gains

The dollar index experienced its second continuous uptick on Tuesday, reaching 98.4, the highest level in approximately two weeks. The U.S. dollar found support as the euro and yen showed weakness. Traders are now anticipating new market catalysts in light of a sparse economic calendar and the ongoing government shutdown in Washington, which has postponed the release of significant economic data. This shutdown has persisted for seven days, following the Senate's fifth rejection of both Democratic and Republican funding proposals on Monday. Attention is shifting to the FOMC minutes along with statements from various Federal Reserve officials, notably Chair Jerome Powell, to gain further insights into monetary policy. At present, markets are factoring in a 92% likelihood of a 25 basis-point rate cut this month and almost an 80% probability of a similar cut in December.