The anticipated end of the US government shutdown boosted the dollar index, with the DXY rising to around 99.65, but economic data weighed on the dollar.
2025-11-10 14:10:52
On Monday in Asian trading, the US dollar index (DXY) fluctuated slightly, trading around 99.65, supported by news that the US government shutdown is expected to end.
Senate Majority Leader John Thune said that bipartisan negotiations on reopening the federal government have made positive progress. The Senate pushed for a vote on reopening the government on Sunday, with some departments expected to continue receiving funding until January 30.
This development provided short-term support for the dollar and improved market risk sentiment. The Senate will continue deliberations on the bill at 11 a.m. on Monday, while House Democratic leadership plans to schedule a vote later this week.
Legislative progress could potentially benefit the market and keep the DXY index high in the short term. However, US economic data remains weak. The University of Michigan's (UoM) preliminary consumer confidence index fell to 50.3 in November, a new low since June 2022, below the market expectation of 53.2.
Weaker-than-expected economic data increased market uncertainty about the economic outlook and intensified investor bets on a Federal Reserve rate cut. The CME FedWatch tool shows traders have priced in a 67% probability of a 25-basis-point rate cut by the Fed in December.
From a technical perspective, the DXY daily chart shows short-term support around 99.30, with resistance at the psychological level of 100.00. The index is expected to maintain a slightly bullish trend in the short term, but changes in economic data and interest rate expectations could trigger volatility.
Editor's Note:
The recent trend of the US dollar index presents a mixed picture of policy support versus economic data pressure. The anticipated end of the US government shutdown is providing support for the dollar; however, declining consumer confidence, weak employment data, and rising market expectations for a Federal Reserve rate cut are putting downward pressure on the DXY.
Overall, the DXY index is expected to fluctuate with a slight upward bias in the short term, but close attention should still be paid to the progress of the US government shutdown and updates to economic data.
Senate Majority Leader John Thune said that bipartisan negotiations on reopening the federal government have made positive progress. The Senate pushed for a vote on reopening the government on Sunday, with some departments expected to continue receiving funding until January 30.
This development provided short-term support for the dollar and improved market risk sentiment. The Senate will continue deliberations on the bill at 11 a.m. on Monday, while House Democratic leadership plans to schedule a vote later this week.
Legislative progress could potentially benefit the market and keep the DXY index high in the short term. However, US economic data remains weak. The University of Michigan's (UoM) preliminary consumer confidence index fell to 50.3 in November, a new low since June 2022, below the market expectation of 53.2.
Weaker-than-expected economic data increased market uncertainty about the economic outlook and intensified investor bets on a Federal Reserve rate cut. The CME FedWatch tool shows traders have priced in a 67% probability of a 25-basis-point rate cut by the Fed in December.
From a technical perspective, the DXY daily chart shows short-term support around 99.30, with resistance at the psychological level of 100.00. The index is expected to maintain a slightly bullish trend in the short term, but changes in economic data and interest rate expectations could trigger volatility.
Editor's Note:
The recent trend of the US dollar index presents a mixed picture of policy support versus economic data pressure. The anticipated end of the US government shutdown is providing support for the dollar; however, declining consumer confidence, weak employment data, and rising market expectations for a Federal Reserve rate cut are putting downward pressure on the DXY.
Overall, the DXY index is expected to fluctuate with a slight upward bias in the short term, but close attention should still be paid to the progress of the US government shutdown and updates to economic data.
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