The US Dollar index stabilized around 97.7 on Thursday, halting a four-day losing streak. The dollar has faced downward pressure due to concerns over central bank independence following President Trump’s actions regarding Fed Governor Lisa Cook. Additionally, the government shutdown and disappointing private payroll data have contributed to the dollar’s weakness.
- The dollar index steadied around 97.7 after four consecutive sessions of losses.
- The US Supreme Court scheduled a January hearing on President Trump’s attempt to remove Federal Reserve Governor Lisa Cook, potentially easing market uncertainty.
- Concerns about central bank independence arose after Trump accused Cook of mortgage fraud and urged the Fed to cut rates more aggressively.
- The government shutdown, the first in nearly seven years, put pressure on the greenback.
- The shutdown is expected to delay the release of key data, including the September nonfarm payrolls report.
- ADP reported a surprise 32,000 drop in private payrolls for September, compared with expectations for a 50,000 increase.
The recent stability for the asset follows a period of vulnerability. Political events, including the government shutdown and actions impacting the central bank, introduce volatility. Delayed economic data releases complicate assessing the asset’s true value, while unexpected shifts in employment figures add to the overall uncertainty. This could lead to continued fluctuations in the asset’s value as markets react to unfolding events.