"The dollar index held steady on Wednesday as investors awaited final developments in Washington, where lawmakers are expected to vote on a compromise to end the record-long government shutdown. The reopening would restore funding to federal agencies and allow the Federal Reserve to regain access to key economic data. However, the dollar could remain under pressure following Tuesday's disappointing ADP employment figures, which pointed to a softening labour market."
"Private employers cut an average of 11,250 jobs per week through late October, while separate data from Challenger, Gray & Christmas showed more than 153,000 announced job cuts last month. Combined with weak employment components in both ISM manufacturing and services reports, the data reinforced concerns over labour market fragility. Markets now price roughly a 63% probability of a December rate cut, as investors increasingly expect the Fed to maintain a dovish stance amid weakening job momentum."
The dollar index remained steady as lawmakers prepared to vote on a compromise to end the record-long government shutdown. Reopening would restore funding to federal agencies and allow the Federal Reserve to regain access to key economic data. ADP data showed private employers cutting an average of 11,250 jobs per week through late October, while Challenger, Gray & Christmas reported over 153,000 announced job cuts last month. Weak employment components in both ISM manufacturing and services reinforced concerns about labour market fragility. Markets price roughly a 63% chance of a December rate cut, and long-dated Treasury yields edged lower, weighing on the dollar.
Read at London Business News | Londonlovesbusiness.com
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