Home Daily Commentaries US Dollar slips as U.S. government shutdown

US Dollar slips as U.S. government shutdown

See Wah Li
Written by
See Wah Li

See Wah Li

OFXpert

With more than 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations.

| Wednesday 1 October, 2025

Daily Currency Update

The US dollar hovered near a one-week low against major peers on Wednesday as the US government entered a shutdown, raising uncertainty in financial markets and weighing on investor confidence. The shutdown is expected to delay the release of key US jobs data, a critical indicator for Federal Reserve policy direction. The absence of timely economic data could dampen demand for the US dollar, as traders may struggle to gauge the strength of the US economy, potentially prompting a shift toward safer-haven currencies.

Key Movers

The pound edged higher on Tuesday, but remained on track for its fourth consecutive monthly loss against the euro and its first monthly decline against the dollar since July, as FX markets weighed both domestic data and US political risks. UK GDP figures confirmed a modest 0.3% expansion in the three months to June, offering little momentum for sterling and reinforcing expectations of sluggish growth ahead.

Expected Ranges

  • GBP/USD: 1.3415 - 1.3495 ▼
  • GBP/EUR: 1.1405 - 1.1485 ▼
  • GBP/AUD: 2.0315 - 2.0415 ▼
  • EUR/USD: 1.1715 - 1.1805 ▲

Written by

See Wah Li

OFXpert

See Wah is passionate about supporting positive transformations when it comes to managing foreign exchange. As a Senior Currency Consultant at OFX, his goal is to help businesses make informed decisions, alleviate risks, and enhance their currency strategies for success. With over 6 years of experience in the foreign exchange market, See Wah’s strength lies in developing effective solutions to help navigate the complexities of currency fluctuations and mitigate their impacts on business profitability.