DXY steadies near 99.50 awaiting clarity on US government shutdown

The dollar index is seen pressured around 99.50 mark on Monday morning in Asia as US private jobs data last week indicated a weak labor market, supporting the US rate cuts. US Challenger job data showed that companies cut over 150,000 jobs in October, marking the biggest reduction for the month in more than 20 years. DXY pulled back under 100 mark attained last week. On Friday, the University of Michigans consumer sentiment index also fell to its lowest level in nearly three and a half years as the US government shutdown extended to the longest in history, adding pressure on the greenback. However, DXY is limiting losses amid reports the US Senate on Sunday moved toward a vote on reopening the federal government, suggesting that an end to the historic shutdown is within reach. Even as weaker US economic data and uncertainty over the US economic outlook might weigh on the US Dollar, any positive signs surrounding the end of the federal shutdown could provide some support to the DXY in the near term.

 

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