US Dollar Still Weak, Government Shutdown Almost Over?

thecekodok


There was no change in trading at the end of last week as investors continued to witness the US dollar continue to experience depreciation in value until the final sessions.


In contrast to the positive performance displayed at the beginning of the week, the US dollar's momentum began to fade in the middle of the week and then deteriorated further.


Market analysts remain attentive to the factors that are influencing investor confidence, by balancing the central bank's monetary policy projections and the risk of a prolonged government shutdown.


The delayed NFP jobs report will make it difficult for the central bank to assess the current health of the labor market in the United States (US).


Inflation data will be given focus this week, but it also risks being delayed if the 'government shutdown' situation continues to stall.


However, there are early signs that the government shutdown will end soon with the efforts underway after the period broke records during Donald Trump's previous term.


After previous disagreements, Democrats finally agreed to support the funding bill to resume government operations.


The positive development regarding the end of the bad situation in America has the potential to inject new support for the strengthening of the US dollar.


The US dollar's decline until the end of last week has given room for other major currencies in the market to show their respective increases.


The Canadian dollar was among the most prominent, supported by the Canadian jobs report published with encouraging figures last Friday.


Canada's job growth in October jumped by 66,600 compared to negative forecasts, while the unemployment rate fell to 6.9% compared to expectations of remaining at 7.1% previously.

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