US dollar on backfoot as government shutdown looms
The US dollar is on the defensive as markets await whether Congress can avoid a government shutdown by September 30, 2026.
If they don't, it could delay important economic reports—like the nonfarm payrolls—making it even harder for investors to figure out what's next for interest rates and the economy.
Euro, British pound gain against US dollar
With all this uncertainty, the euro and British pound are both edging higher against the dollar.
Investors are also watching fresh job numbers for clues about how strong the US economy really is.
Meanwhile, hopes for big Federal Reserve rate cuts have faded after some solid economic data, with markets now expecting only a modest easing by December.
Even Australia's dollar got a small boost as traders look ahead to their central bank's next move.