DXY Locked at 97.7: Fed Dovishness & Shutdown Hold Back Pace
The US Dollar Index (DXY) traded narrowly between 97.70 and 97.75 during the Asian session, flat after rebounding from a one-week low. Markets are now assessing the likelihood of two Fed rate cuts (October and December), making the dollar appear fragile and unlikely to sustain its rebound.
Signals of weakness came from the ADP report: the US private sector lost 32,000 jobs in September, the most since March 2023, while August's data was revised from +54,000 to -3,000. Meanwhile, the ISM manufacturing index edged up to 49.1 (from 48.7) but remained in contraction for seven consecutive months—not enough to attract further USD buying.
The situation is further pressuring the dollar as the government shutdown could delay the release of key data at the start of the month—including Nonfarm Payrolls. With this "data blackout," the short-term direction of the USD will depend more on speeches by FOMC officials and changes in market risk sentiment. (ads)
Source: Newsmaker.id
