The dollar index (DXY00) today fell to a 1.5-week low and is down by -0.22%. Signs that the US labor market has weakened are weighing on the dollar after a report today from ADP showed US private employers shed more jobs than they created in the four weeks ending October 25. Also, today's report showing a decline in the US Oct NFIB small business optimism index to a 6-month low was bearish for the dollar.
The dollar is also under pressure amid signs that a resolution to the US government shutdown is nearing. After the Senate voted 60-40 on Monday to pass a temporary continuing resolution (CR) to fund the government, the House is expected to vote on the measure on Wednesday, and House Speaker Johnson said he expects it will pass quickly. If approved, the bill goes to President Trump, who said he will sign it into law. The reopening of the government would allow the release of economic reports, which may show a weakening US economy, prompting the Fed to keep cutting interest rates.
