FX.co ★ Dollar Attempts to Rebound

The dollar index steadied around 99.6 on Wednesday, striving to recover following three consecutive days of declines. This comes as traders anticipated the imminent resolution of the US government shutdown and grew increasingly optimistic about the Federal Reserve's capacity to lower interest rates. House members are scheduled to return to Washington today to vote on a funding deal for federal agencies. Should the bill pass, President Trump is expected to enact it into law, which would enable the government to resume normal operations in a matter of days. Market projections currently indicate a roughly 65% probability of a further 25 basis points interest rate reduction by the Fed next month. On the economic data front, ADP's recent high-frequency statistics disclosed that private employers have been reducing around 11,250 jobs per week over the four weeks leading to October, heightening concerns about the labor market. The US dollar gained strength primarily against the yen, which dropped to a nine-month low in comparison.