17/11/2025
The US Dollar (USD) remains on the back foot as concerns over a potential US government shutdown intensify, with Vice President JD Vance signalling that the government is “headed to a shutdown” after Republicans and Democrats failed to reach a funding agreement before the Tuesday midnight deadline.
The US Dollar (USD) is retreating at the start of the week, pressured by the heightened risk of a US government shutdown, which US President Donald Trump is set to discuss with congressional leaders today.
The US Dollar’s two-day rally is consolidating, driven by upbeat US macroeconomic data, including revised Q2 GDP growth of 3.8% and lower Initial Jobless Claims. This strong data may lead the Federal Reserve (Fed) to be cautious about future interest rate cuts.
Major currency pairs are struggling to find a clear direction as markets await new catalysts, including German business sentiment and US housing data.
The Euro has softened against the US Dollar following weaker-than-expected German business climate data, while the Pound Sterling has also lost ground due to disappointing UK PMI figures and fiscal concerns.
Sterling is facing headwinds against the Euro due to UK fiscal concerns but has stabilised against the US Dollar.