The US Dollar Index (DXY), which measures the greenback against six major currencies, traded higher around 99.65 during Monday’s Asian session on growing optimism the federal shutdown could soon end.
Senate Majority Leader John Thune said bipartisan negotiations have taken a positive turn, and on Sunday the Senate moved toward a vote on legislation that would reopen the government and fund some agencies through January 30. Lawmakers will reconvene at 11:00 a.m. Monday to continue debate, and House Democratic leadership has warned members that further votes are planned later this week—with 36 hours’ notice required amid travel disruptions.
While progress on ending the shutdown could keep the DXY supported, weaker US data may act as a counterweight. The University of Michigan’s Consumer Sentiment Index fell to 50.3 in November—the lowest reading since June 2022, below the 53.2 forecast. In response, futures traders have pushed up the odds of a 25-basis-point Fed rate cut in December to nearly 67%, according to the CME FedWatch tool.
