US dollar movement forecasts
The dollar fell to its lowest level in almost a week on Thursday as traders assessed the impact of the US government shutdown, while weak jobs data reinforced expectations that the Federal Reserve will cut interest rates two more times this year.
The dollar index, which measures the US currency against a basket of major currencies, fell to 97.55 for the fifth consecutive day of declines, and we still expect further declines as mentioned here.
The ADP National Employment Report showed on Wednesday that employment in the US private sector contracted by 32 thousand jobs last month, contrary to expectations that private sector employment increased by more than 50 thousand jobs.
The jobs report came against the backdrop of the US government shutdown, hampering the flow of federal economic data amid uncertainty and division among policymakers. Data on Wednesday also showed a slight uptick in U.S.
manufacturing activity in September, despite weak new orders and hiring as factories suffer the fallout from sweeping tariffs imposed by President Donald Trump.
