⚠️ US Government Shutdown Risks Delay of Jobs Report, Dollar Selling Dominates

🏛 Shutdown and Its Impact

• The US Senate failed to pass a stopgap budget → partial government shutdown has begun.

• Weekly jobless claims report has already been postponed.

• The Nonfarm Payrolls (NFP) is now at high risk of being delayed, adding to USD selling pressure.

• Since NFP is a core dataset for FOMC decisions, its absence amplifies market uncertainty.

💱 FX Market Moves (London Session)

• USD/JPY: Dropped from the low-147s to 146.73, near the lowest since Sept 18.

• EUR/USD: Climbed to 1.1757, reflecting broad dollar weakness.

• GBP/USD: Reached 1.3508, holding in high ground.

• Crosses: Yen buying dominant — EUR/JPY in the low-173s, GBP/JPY in the low-198s.

• Key drivers: USD weakness + risk-aversion-driven yen buying.

📊 Today’s Economic Data

Scheduled

• Hong Kong Retail Sales (Aug)

• UK DMP Inflation Survey (Sep)

• Eurozone Employment Data (Aug)

• US Challenger Job Cuts (Sep)

Postponed

• US Initial Jobless Claims (Sep)

🗣 Key Speeches / Events

• Europe: Villeroy (Bank of France), de Guindos (ECB VP), Nagel (Bundesbank), others.

• US: Logan (Dallas Fed) scheduled to speak.

📌 Market Wrap

• USD/JPY: Testing the high-146s, with NFP delay risk keeping buyers on the sidelines.

• EUR & GBP: Rising against USD, supported by risk flows.

• Sentiment: Market focus shifts to US political/budget negotiations, with dollar weakness likely to persist.