<\/p>\n\n\n\n
The U.S. dollar<\/strong> held steady on Thursday, supported by weakness in both the euro<\/strong> and yen<\/strong>, as investors weighed ongoing political upheaval in Europe and Japan<\/strong> alongside the effects of a prolonged federal government shutdown<\/strong> in Washington.<\/p>\n\n\n\n By 05:28 ET (09:28 GMT)<\/strong>, the U.S. dollar index<\/strong>\u2014which tracks the greenback against a basket of major currencies\u2014was unchanged at 98.94<\/strong>, after touching a two-year high<\/strong> earlier in the session.<\/p>\n\n\n\n In Europe, attention returned to France\u2019s political turmoil<\/strong>, where President Emmanuel Macron<\/strong> is expected to name a new prime minister within 48 hours<\/strong>, following the abrupt resignation of Sebastien Lecornu<\/strong> earlier this week.<\/p>\n\n\n\n Lecornu\u2019s government\u2014France\u2019s shortest-lived in modern history\u2014collapsed within hours of its formation, after facing widespread backlash from both allies and opponents. The chaos has sparked speculation about a snap parliamentary election<\/strong>, though Macron\u2019s office stated that a majority of lawmakers oppose such a move.<\/p>\n\n\n\n Analysts at ING<\/strong> warned that the situation represents both a domestic political<\/strong> and potentially economic crisis<\/strong>, with \u201cindirect contagion\u201d risks to other eurozone economies.<\/p>\n\n\n\n The euro slipped 0.1% to $1.1622<\/strong>, marking its lowest level since late August<\/strong> and extending its weekly loss to 0.8%<\/strong>.<\/p>\n\n\n\n In Asia, the Japanese yen<\/strong> continued to depreciate after Sanae Takaichi\u2019s victory<\/strong> in the leadership race of Japan\u2019s ruling Liberal Democratic Party<\/strong>, a move seen as favoring fiscal stimulus and loose monetary policy<\/strong>.<\/p>\n\n\n\n The yen traded at \u00a5152.67 per dollar<\/strong>, its weakest since February<\/strong>, and has fallen over 3.6% this week<\/strong> as traders anticipate increased government spending<\/strong> and fewer Bank of Japan rate hikes<\/strong> under Takaichi\u2019s leadership.<\/p>\n\n\n\n Market participants expect Japan\u2019s Ministry of Finance to closely monitor currency movements<\/strong>, as sharp yen weakness risks renewed verbal or direct intervention.<\/p>\n\n\n\n The U.S. government shutdown<\/strong>, now in its second week<\/strong>, has halted the release of several key economic indicators, leaving investors without vital data that would normally guide expectations for Federal Reserve policy<\/strong>.<\/p>\n\n\n\n Minutes from the Fed\u2019s September 16\u201317 meeting<\/strong> revealed a split among policymakers:<\/p>\n\n\n\n Analysts at Capital Economics<\/strong> noted that most FOMC participants supported moving rates toward a \u201cneutral setting\u201d<\/strong>\u2014a level that neither stimulates nor restrains growth\u2014due to ongoing downside risks in employment.<\/p>\n\n\n\n Market pricing remains firm for a 25-basis-point rate cut<\/strong> at the October meeting<\/strong>, followed by another potential move in December<\/strong>.<\/p>\n\n\n\n With the U.S. dollar supported by relative stability<\/strong>, and the euro and yen under pressure from domestic political risks<\/strong>, currency markets are expected to stay volatile in the short term.<\/p>\n\n\n\n Traders now await Fed Chair Jerome Powell\u2019s speech<\/strong> and any new developments from Paris or Tokyo<\/strong> for signals that could set the tone for global FX markets heading into the final quarter of 2025.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar held steady on Thursday, supported by weakness in both the euro and yen, as investors weighed ongoing political upheaval in Europe and Japan alongside the effects of a prolonged federal government shutdown in Washington. By 05:28 ET (09:28 GMT), the U.S. dollar index\u2014which tracks the greenback against a basket of major currencies\u2014was …<\/p>\n","protected":false},"author":9,"featured_media":117672,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49],"tags":[6877,6885],"class_list":["post-119745","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","tag-dollar","tag-fed"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=119745"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119745\/revisions"}],"predecessor-version":[{"id":119746,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/119745\/revisions\/119746"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/117672"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=119745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=119745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=119745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n\n\n\nFrance\u2019s Political Crisis Pressures the Euro<\/strong><\/h3>\n\n\n\n
\n\n\n\nYen Weakens as Takaichi Victory Shifts Japan Policy Outlook<\/strong><\/h3>\n\n\n\n
\n\n\n\nU.S. Shutdown and Fed Outlook in Focus<\/strong><\/h3>\n\n\n\n
\n
\n\n\n\nOutlook<\/strong><\/h3>\n\n\n\n