The dollar index (DXY00) on Thursday fell by -0.47% and posted a 1-week low. Dovish Fed comments weighed on the dollar Thursday after Fed Governor Christopher Waller said the Fed can keep lowering interest rates to support a faltering labor market. Also, Thursday’s economic news, which showed the October Philadelphia Fed business outlook survey fell more than expected to a 6-month low, was bearish for the dollar. In addition, the strength of the euro undercut the dollar after EUR/USD rallied to a one-week high when French Prime Minister Lecornu survived two no-confidence votes.
The ongoing shutdown of the US government is bearish for the dollar. The longer the shutdown is maintained, the more likely the US economy will suffer, a negative factor for the dollar.
