Forex News: U.S. Dollar Slides Amid Federal Government Shutdown Risks

U.S. Dollar Slides Amid Federal Government Shutdown Risks

(RTTNews) - The U.S. dollar weakened against other major currencies in the European session on Monday amid concerns of a looming U.S. government shutdown. U.S. Democrats and Republicans will meet today at the White House in hopes of hammering out a compromise extension to avert a government shutdown that could come at 12:01 a.m. Wednesday.

The lack of a deal to agree to a short-term bill to keep U.S. government open could delay the release of the important September jobs report due Friday and may also affect the release of CPI readings scheduled for Oct. 3 and Oct. 15.

Other key U.S. economic reports due this week include reports on manufacturing and service sector activity, consumer confidence and job openings.

Investors likely focus on geopolitical tensions, upcoming Chinese PMI and U.S. employment data.

Russia attacked the Ukrainian capital and other cities across the country on Sunday with nearly 600 drones and dozens of missiles, killing at least four people in Kyiv and injuring dozens more in an assault that lasted more than 12 hours.

Elsewhere, power outages were reported across Belgorod Oblast after Ukrainian HIMARS rockets reportedly struck a thermal power plant near the Russian city on Sept. 28.

In the European trading today, the U.S. dollar fell to 4-day lows of 1.1734 against the euro and 1.3449 against the pound, from early highs of 1.1705 and 1.3407, respectively. If the greenback extends its downtrend, it is likely to find support around 1.18 against the euro and 1.38 against the pound.

Against the yen and the Swiss franc, the greenback dropped to 4-day lows of 148.65 and 0.7955 from early highs of 149.42 and 0.7976, respectively. The greenback may test support near 144.00 against the yen and 0.77 against the franc.

Against Australia, the New Zealand and the Canadian dollars, the greenback slid to 4-day lows of 0.6574, 0.5793 and 1.3918 from early highs of 0.6547, 0.5770 and 1.3939, respectively. On the downside, 0.67 against the aussie, 0.60 against the kiwi and 1.37 against the loonie are seen as the next support level for the greenback.

Looking ahead, U.S. pending home sales for August and U.S. Dallas Fed manufacturing index for September are slated for release in the New York session.

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