17/03/2026
The US Dollar (USD) managed to stabilise and stay resilient against its rivals on Thursday, following bearish action seen in the first half of the week. The US federal government shutdown enters its third day.
Uncertainty continues to grip the markets as the US government shutdown enters its second day, causing the US Dollar (USD) to struggle and the USD Index to edge lower for the fifth consecutive trading day.
The US Dollar (USD) remains under bearish pressure on the first trading day of the fourth quarter after the US Congress failed to pass a funding measure and the US federal government officially shut down.
As October begins, market attention will focus on whether the US government avoids a shutdown and how this impacts Fed decision-making. In the UK, BoE commentary and upcoming inflation data will be pivotal in shaping GBP sentiment, while fiscal concerns remain a headwind.
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.