After dropping for three days, the EUR/USD pair showed signs of recovery on Thursday, rising to about 1.1650 in the Asian session. The increase in the value of the Euro coincided with a decline in the US dollar as a result of the ongoing, more than week-long US government shutdown.
A number of government agencies, including the Bureau of Labor Statistics and the Bureau of Economic Analysis, have suspended data collection due to the US shutdown. The Federal Reserve (Fed) has found it more difficult to assess the economy and determine when to raise interest rates as a result.
The Fed’s September meeting minutes indicated that while the majority of officials favored a rate cut and alluded to further easing later this year, some members wished to proceed cautiously due to persistent inflation concerns.
Meanwhile, political unrest in France is still creating uncertainty throughout Europe. President Emmanuel Macron is under pressure to hold early elections as a result of Prime Minister Sebastien Lecornu’s resignation and that of his government. The Euro’s short-term upward trajectory may be constrained by this political unrest.
Traders are looking for hints about future monetary policy in Fed Chair Jerome Powell’s upcoming speech, despite these obstacles. One of the most active forex trading pairs is still the EUR/USD pair, which provides opportunities for currency traders.
