FX.co ★ Dollar Holds Steady as Shutdown Deal Eyed

On Tuesday, the dollar index remained relatively stable at approximately 99.6, exhibiting a sideways movement as market participants anticipated developments regarding the resolution of the United States' record-long government shutdown. The Senate made progress by advancing a proposal to reopen the federal government, successfully acquiring the 60 votes required. House Speaker Mike Johnson indicated that the bill could potentially pass the House by Wednesday and be forwarded to President Donald Trump for his signature. In other developments, recent data revealed a reduction in US employment figures for October, alongside a dip in consumer sentiment to its lowest level in three and a half years as of early November. These factors have bolstered expectations for a near-term interest rate cut by the Federal Reserve. Currently, traders estimate a 64% probability of a 25-basis-point rate reduction by the Fed in December. Additionally, Fed Governor Stephen Miran has advocated for a more substantial half-point cut, citing declining inflation and rising unemployment trends.