USD Decline Continues Amidst Economic Developments

The EUR/USD pair has continued its downward trend, settling around 1.1630 during Asian trading on Tuesday. Major currency pairs are experiencing selling pressure as the US dollar gains strength, with market optimism that the US government shutdown might conclude this week.

Currently, the U.S. Dollar Index (DXY), which measures the dollar’s value against six significant currencies, has risen to approximately 98.70.

Market sentiment seems to favor the dollar, partly due to expectations surrounding discussions between President Donald Trump and Chinese leader Xi Jinping, set for the Asia-Pacific Economic Cooperation Conference in South Korea later this month.

On the domestic side, investors are keenly awaiting the release of September’s U.S. Consumer Price Index (CPI) data due this Friday. The upcoming inflation figures are likely to heavily influence market expectations regarding the Federal Reserve’s monetary policy.

Support for the dollar is evident, especially against the euro, which has shown some resilience against other currencies based on the belief that the European Central Bank (ECB) will refrain from further interest rate cuts this year. Several ECB members have indicated that rates will remain stable while assessing the impact of U.S. tariffs on prices.

“I think the Schumer shutdown is likely to end this week,” noted White House economic adviser Kevin Hassett in a recent interview. This statement reflects the uncertainty surrounding the negotiations yet suggests potential progress.