"The US dollar remained under pressure on Thursday after four straight sessions of declines. Sentiment remains fragile as the government shutdown continues to weigh on the outlook. With lawmakers unable to agree on a funding deal, key data releases, including September's nonfarm payrolls, are expected to be delayed, complicating the Federal Reserve's policy assessment ahead of its October 29 meeting."
"At the same time, developments over the legal dispute between Donald Trump and Fed Governor Lisa Cook could continue to affect investor confidence regarding central bank independence. The US Supreme Court scheduled a January hearing on Trump's attempt to remove Cook, giving markets clarity on the timeline. While this could ease immediate uncertainty, political risks could remain a key focus for investors. While positive developments could benefit the dollar, any setback could further intensify selling pressure."
"Labour market signals also pointed to weakness. ADP reported a surprise 32,000 drop in private payrolls for September, defying expectations of a 50,000 gain, reinforcing worries about momentum in hiring. Meanwhile, US manufacturing activity edged higher last month, though it remained in a contraction zone. Subdued new orders and employment highlighted the lingering drag from tariff-related headwinds. Treasury yields held steady, with the 10-year note around 4.1%,"
US dollar drifted lower after four straight sessions of declines as sentiment remained fragile amid an ongoing government shutdown. Lawmakers' failure to pass a funding deal has led to expectations that key economic releases, including September nonfarm payrolls, will be delayed, complicating the Federal Reserve's policy assessment ahead of the October 29 meeting. A legal dispute involving Donald Trump and Fed Governor Lisa Cook, with a Supreme Court hearing slated for January, adds political risk that could affect perceptions of central bank independence. ADP reported a 32,000 drop in private payrolls for September. Manufacturing remained in contraction and Treasury yields hovered near 4.1%.
Read at London Business News | Londonlovesbusiness.com
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