The possible shutdown of the US federal government has spooked investors and pushed the Dollar broadly lower as a result. The government could shut down as soon as Friday if a budget is not reached before then. Any optimism over the reformation of the US tax code is also beginning to erode. Friday’s release of private sector jobs data also is on investors’ minds according to analysts, and that will mean not big Dollar movements until after then, or even beyond to the Fed’s next policy meeting which takes place next week.
As reported at 11:00 am (GMT) in London, the EUR/USD was trading at $1.1824, down 0.63%; earlier, the pair had hit a peak of $1.18481. The USD/JPY is trading at 112.156 Yen, a gain of 0.03% and well off the session high of 112.633 Yen.
Bank of Canada Statement Ahead
The Canadian Dollar moved lower and was trading at C$1.2675, down 0.02%. The Bank of Canada will be announcing any changes to its monetary policy later today. Analysts have forecast that the BoC is likely to maintain its current benchmark rates. What will be watched closely is any hints for an early 2018 policy change, possibly even another rate hike. Analysts say if the statement mentions underlying price pressures that could leave the door open for a rate adjustment in January.