Dollar Steady, What Happens After the US Government Shutdown?
The US dollar index held steady around 99.5 on Thursday, moving sideways after the US House of Representatives passed a short-term funding bill to end the longest government shutdown in history. This measure is expected to be signed by President Donald Trump soon, allowing government operations to resume in the coming days. The end of the shutdown will also pave the way for the release of delayed economic reports, although the White House indicated that October employment and inflation data may not be released.
In monetary markets, market participants estimate there is about a 60% chance that the Federal Reserve will cut interest rates by 25 basis points at its upcoming December meeting. This figure is slightly lower than the approximately 67% previously expected. This indicates uncertainty about the direction of interest rate policy after the government shutdown disrupted economic monitoring.
Meanwhile, ADP data released earlier this week showed that private employers cut about 11,250 jobs per week in the four weeks ending in October. This raises concerns about the condition of the US labor market, which is likely to influence the Fed's future monetary policy. With the shutdown over, markets are now waiting to see how pending economic data will impact interest rate decisions and overall economic sentiment. (az)
Source: Newsmaker.id
