Dollar Weakens Ahead of Big U.S. Economic Data as Shutdown Risk Looms
The U.S. dollar is under pressure as investors wait for key economic reports. At the same time, there’s growing worry that parts of the U.S. government could shut down.
In the Asian session, the dollar lost ground: it fell 0.4% against the yen, 0.28% against the euro, and 0.27% against the British pound. The dollar index dropped about 0.22%, slipping from its gains last week.
Markets are now watching several important U.S. data releases due this week — things like job numbers, private payrolls, and factory activity. These reports will help decide whether the Federal Reserve will cut interest rates.
The shutdown risk adds more uncertainty. If Congress can’t pass a funding bill by Tuesday, parts of the government may close starting Wednesday. That could also delay Friday’s nonfarm payroll report — a key guide for economic health.
Some analysts say even if a shutdown happens, it likely won’t change the Fed’s plan much. Because the Fed’s meeting is at the end of October, officials may still use the available data — or private reports — to make decisions.
Impact:
The dollar might stay weak if shutdown fears continue. Key U.S. data could sway rate cut bets, while delayed reports may make markets cautious.