FX.co ★ Dollar Muted as Delayed Data Weighs

The dollar index steadied around 97.4 on Wednesday, taking a breather from its recent surge as the partial government shutdown resulted in the delay of critical economic reports, prompting investor caution. The anticipated job openings data and the January employment report, originally slated for release this week, have been postponed, leaving the status of the US labor market uncertain. President Donald Trump has approved a $1.2 trillion budget to terminate the partial shutdown; however, funding for the Department of Homeland Security remains unaddressed. In recent trading sessions, the dollar appreciated following Trump's nomination of Kevin Warsh as the next Federal Reserve chair, a choice perceived as less dovish compared to other contenders. Additionally, robust US manufacturing data has moderated expectations for aggressive interest rate cuts. Despite this, the markets continue to predict that the Federal Reserve could implement two rate cuts this year, potentially occurring in June and October.