EUR/USD extends winning streak as Dollar slips ahead of key US House vote

• EUR/USD extends gains, rising for the sixth straight day as the US Dollar recovery loses momentum.
• Investors await a crucial US congressional vote to end the government shutdown.
• Hawkish ECB commentary and stable German inflation underpin the Euro's resilience.

The Euro (EUR) edges higher against the US Dollar (USD) on Wednesday, reversing earlier losses as the Greenback's rebound loses steam ahead of a critical congressional vote to end the record-long US government shutdown. At the time of writing, EUR/USD is trading around 1.1589, extending its winning streak for the sixth consecutive day after bouncing off an intraday low near 1.1594.

The US House of Representatives is set to vote later on Wednesday on a bill to reopen the government and restore federal operations. House Majority Leader Steve Scalise told CNBC the vote is expected around 7 p.m. ET, following Monday's 60-40 bipartisan approval in the Senate.

The progress has helped ease near-term fiscal concerns and lifted overall market sentiment. If the spending bill passes as planned, it will head to President Donald Trump for final approval. The measure would keep most federal agencies funded through January 30, 2026, while extending allocations for select departments until September 30, 2026.

On the Euro side, the single currency draws mild support from steady German inflation data and hawkish European Central Bank (ECB) rhetoric. Germany's Harmonized Index of Consumer Prices (HICP) rose 0.3% MoM and 2.3% YoY in October, both matching forecasts and reinforcing expectations that Eurozone inflation remains broadly stable.

Meanwhile, ECB policymaker Isabel Schnabel noted earlier in the day that the bloc's economy still shows "positive underlying momentum" and that "services inflation remains sticky." She added that interest rates are "absolutely in a good place," though inflation risks are "tilted slightly to the upside," signaling the ECB is comfortable maintaining its current policy stance for now.

Looking ahead, traders will monitor developments in Washington as the shutdown vote unfolds, while focus in Europe shifts to Thursday's Eurozone Industrial Production report. In the US, uncertainty over the release of delayed data, including the Consumer Price Index (CPI), keeps markets cautious on the Federal Reserve's (Fed) monetary policy path.