The US dollar showed significant strengthening in trading in the New York session yesterday after experiencing gradual declines for 4 consecutive days from the opening of the week.
The market situation is still uncertain with the initial impact that will be felt on the economy following the start of the partial government shutdown in the United States (US).
The impasse in reaching an agreement in Congress has prompted non-essential operations in the US to be temporarily halted.
The jobs report that investors are waiting for on Friday also had to be postponed for publication until September.
Important indicators will continue to be studied by investors in assessing further decisions at the October FOMC meeting after the Federal Reserve (Fed) resumed interest rate cuts at the September meeting as expected.
With the central bank's previous signals, the market still expects further cuts to be implemented at the remaining 2025 meetings, but how large the cuts will be requires guidance from the latest data.
Other major currencies were again pressured to fall again with the strengthening of the US dollar, but the situation is likely to only last in the short term.
It is still unclear how the market will move towards the final trading sessions of this week, so investors will remain vigilant in controlling existing trading risks.
