Euro Holds Firm as Dollar Weakens Ahead of Key U.S. Shutdown Vote
The Euro is showing some solid momentum this week, climbing higher against the U.S. Dollar as traders keep a close eye on what’s happening in Washington. The EUR/USD pair has now extended its winning streak for six straight days, signaling that the bearish control we saw earlier might be loosening—at least for now.
As of Wednesday, the pair was trading around 1.1589, bouncing off earlier lows near 1.1594. The U.S. Dollar’s recent rebound seems to be losing steam, largely because markets are bracing for a crucial congressional vote that could finally end the record-breaking U.S. government shutdown. According to reports, the House of Representatives is set to vote later today on a bill that would reopen the government and restore federal operations. If passed, the measure would move to President Donald Trump for final approval, potentially keeping federal agencies funded through January 2026, with extended allocations for select departments into September of that year.
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This political development has lifted overall market sentiment. Investors have been anxious over the shutdown’s economic fallout, especially since it has delayed key data releases like the U.S. Consumer Price Index—figures that play a major role in shaping the Federal Reserve’s next monetary policy moves. Without these numbers, the market has been left somewhat in limbo, waiting for direction from Fed officials.
On the Euro side, the currency has found support from steady German inflation data and a few hawkish remarks from European Central Bank (ECB) policymakers. Germany’s latest Harmonized Index of Consumer Prices showed a 0.3% monthly and 2.3% yearly increase—exactly as forecast. This stability suggests inflation pressures in Europe’s largest economy remain well-contained.
ECB policymaker Isabel Schnabel commented that the Eurozone still shows “positive underlying momentum,” adding that services inflation remains sticky and that interest rates are currently “in a good place.” Her remarks imply that the central bank is not in any rush to make major changes, though inflation risks are seen as leaning slightly to the upside.
Looking ahead, traders are focusing on two main things—how the U.S. shutdown vote unfolds, and what fresh clues the Fed might offer about future rate decisions. Meanwhile, in Europe, attention will turn to the upcoming Eurozone Industrial Production data due Thursday.
For now, the EUR/USD pair continues to move within a cautious range, but many analysts believe a strong move could follow once clarity returns from both Washington and Frankfurt. Until then, the market remains steady, with the Euro showing quiet resilience while the Dollar waits for its next cue.
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