Select Language

USD slips back as markets mull shutdown - Scotiabank

Breaking news

USD slips back as markets mull shutdown - Scotiabank

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.10.03 20:21
USD slips back as markets mull shutdown - Scotiabank

update 2025.10.03 20:21

The US Dollar (USD) fell a little Wednesday on the back of the soft ADP report but rose more significantly yesterday after an obscure private sector report (Revelio Labs anyone?) report apparently suggested the NFP data would show an above consensus outcome of a gain of around 60k in jobs, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD may continue to meander in a range

"Would, if it was actually being released this morning. We do note that Chicago Fed's labour market data forecast, also released yesterday, suggests a strong probability that the unemployment rate would remain at 4.3% in September which might infer less need for the Fed to act aggressively on rate policy--but markets are not expecting that anyway. Swaps continue to price in a 25bps cut at the end of the month and are close to fully pricing (around 90%) 50bps of cuts through year-end."

"The USD is tracking lower overall this morning and heading for a technically soft close on the week in DXY terms but whether that really drives any pick up in momentum remains to be seen. More meandering in the USD seems likely in the absence of official US economic data which may keep the DXY between 97.5/98.5 for now. FX investors have been whipsawed by US political developments this year and may just sit on their hands until the US government shutdown situation becomes clearer. Investors appear to be resolved to the idea that the US federal government may be closed for a lengthy period, similar perhaps to the 35-day shutdown in President Trump's first term."

"Overnight news is scant and there is little movement in the major currencies to note. Global stocks continue to forge ahead and major bond markets are narrowly mixed. High beta FX is outperforming marginally (NZD, ZAR) while the JPY is lagging with a small net loss on the day--but may still close the week with a solid gain and remains underpriced relative to the narrowing in US/Japan yield spreads we believe. While the payrolls data is unlikely to make an appearance today, we do get some US data (final PMIs and ISM Manufacturing plus some remarks from the Fed's Miran (voter), Logan (non-voter) and Jefferson (voter) over the course of the session."


Date

Created

 : 2025.10.03

Update

Last updated

 : 2025.10.03

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD steadies as Fed divide offsets shutdown drag

EUR/USD consolidates on Friday amid a quiet trading session due to the lack of a fresh catalyst, sponsored by a US government shutdown that seems poised to extend beyond the current week. The pair trades at 1.1738, up 0.28%, at the time of writing.
New
update2025.10.04 06:12

Fed's Miran insists Fed has room for more cuts

Federal Reserve (Fed) Board of Governors plant Stephen Miran doubled down on his belief that the Fed has a lot more room to cut its way to neutral interest rates.
New
update2025.10.04 04:59

Fed's Jefferson nods to risks on both sides of the Fed's mandate

Federal Reserve (Fed) Vice President and Board of Governors member Phillip Jefferson acknowledged that ongoing risks to both sides of the Fed's policy mandates are seeing growing risks.
New
update2025.10.04 03:56

Gold climbs as shutdown fuels haven demand, eyes record high

Gold price advances during the North American session on Friday, up by 0.70% for the day as the US government shutdown extends to three days, poised to end the week positively for the seventh straight week. At the time of writing, XAU/USD trades at $3,882 after hitting a daily low of $3,838.
New
update2025.10.04 03:54

Fed's Logan warns inflation pressures persist, could be made worse

Federal Reserve (Fed) Bank of Dallas President Lorie Logan struck a nervous tone on Friday, warning that despite a rapidly-weakening labor market, a lot of potential policy moves could accidentally spark another round of renewed inflationary pressures.
New
update2025.10.04 03:49

Dow Jones Industrial Average rises 300 points on Friday

The Dow Jones Industrial Average (DJIA) caught a firm bid on Friday, rising 482 points, or 1.04%, bottom-to-top. The Dow briefly pierced the 47,000 major price handle for the first time ever, before easing back to a more sedate +300 points (0.65%) on the day.
New
update2025.10.04 03:44

AUD/USD holds near 0.6600 as Greenback weakens on US shutdown and soft PMI data

The Australian Dollar (AUD) holds modest gains versus the US Dollar (USD) on Friday, supported by a weaker Greenback as the United States (US) government shutdown drags on and the ISM Services Purchasing Managers Index (PMI) softens.
New
update2025.10.04 03:23

EUR/USD holds modest bid amid US shutdown and mixed PMI readings

The Euro (EUR) trades with a modest bid against the US Dollar (USD) on Friday, with EUR/USD stuck in this week's range of 1.1750-1.1700.
New
update2025.10.04 00:38

GBP/USD rises as US shutdown prolongs, Fed data gap grows

The Pound Sterling advances some 0.26% on Friday as the US government began its third day of shutdown and skipped the release of Nonfarm Payroll figures for September. Purchasing Managers Index (PMI), data from S&P Global and ISM in the US, are the main drivers of price action.
New
update2025.10.04 00:36

EUR/JPY rebounds after dip to one-month low

The Euro (EUR) gains traction against the Japanese Yen (JPY) on Friday, recovering after briefly slipping to its lowest level since September 9 on Thursday. At the time of writing, EUR/JPY trades near 173.00, staging a modest rebound from recent lows.
New
update2025.10.03 23:08

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel