EUR/USD steady at 1.1720 as Dollar firm amid US shutdown
EUR/USD remains steady during the North American session on Thursday, yet registering back-to-back bearish days as the US Dollar strengthens amid the ongoing government shutdown and the absence of US economic data releases like Initial Jobless Claims. The pair trades at 1.1719, down 0.09%.
Wall Street is poised to end the day in the green despite the lack of progress to reopen the US government. Data from Challenger, Gray and Christmas revealed that companies are expected to hire over 30,000 fewer people in September, as the labor market continues to cool down.
Dallas Federal Reserve (Fed) President Lorie Logan was hawkish, stating that inflation is above target and trending upward. Despite this, she recognized the risks on both sides of the dual mandate, adding that the labor market is cooling.
Given the backdrop, investors seem confident that the Fed will slash rates at the October 29 meeting, with odds standing at 96%, as revealed by the Prime Market Terminal interest rate probability tool.
In the meantime, the US Nonfarm Payrolls report is expected to be delayed, leaving traders adrift for the Institute of Supply Management (ISM) Services PMI for September and Fed officials crossing the wires.
Across the pond, Eurostat revealed that the Unemployment Rate rose from 6.2% in July to 6.3% in August, above estimates.
Source : Fxstreet.com
