US Dollar Index holds losses near 100.00 as US government shutdown becomes longest on record

• US Dollar Index edges lower to near 100.05 in Thursday's Asian session. 
• The US government shutdown becomes the longest in US history, weighing on the DXY. 
• Private-sector payrolls rose by 42K in October, according to ADP Research data, after a revised 29K decline in September. 

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, trades on a negative note around 100.05 during the Asian trading hours on Thursday. The DXY drifts lower as the US government shutdown is now the longest in US history, raising concerns over economic losses.

The government shuttered on October 1 after Congress failed to break a stalemate over funding negotiations. More than a month later, an end to the stalemate appears nowhere in sight. The uncertainty and a prolonged US federal government shutdown undermine the DXY. The Senate is not currently set to vote on a House-passed measure to reopen the government on Thursday, after it failed to advance for the 14th time on Tuesday.

Private-sector job creation rebounded in October, according to a snapshot of the labor market that has become more closely watched in the absence of official federal jobs data. Private sector employment in the US climbed by 42K in October, compared to the 29K decrease (revised from -32K) recorded in the previous month, the Automatic Data Processing (ADP) showed on Wednesday. This figure came in better than the estimations of 25K.

After the US central bank cut its interest rates last week for a second consecutive meeting, Fed Chair Jerome Powell noted that he sees "very gradual cooling" in the labor market, but nothing more than that." He made it clear that another reduction at the Fed's next meeting in December wasn't certain.

Fed Governor Stephen Miran said on Wednesday that data showing employment at US companies increased in October was "a welcome surprise". However, Miran suggested that another rate cut could be appropriate in December, adding, "Policy is too restrictive," and that continuing to run a policy that restrictive is to also run unnecessary risks.

Traders will take more cues from Fedspeak on Thursday. Fed officials are set to speak, including Michael Barr, John Williams, Anna Paulson, Beth Hammack, Christopher Waller, and Alberto Musalem. Any hawkish comments from policymakers could lift the US Dollar in the near term.