Forex – Dollar Struggles Despite Senate Reportedly Reaching Deal to End Shutdown

© Reuters. – The dollar recovered some of its losses against a basket of major currencies amid reports suggesting that the government secured enough support in the Senate to end the government shutdown.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.18% to 90.33.

Senate Minority Leader Chuck Schumer reportedly said that a deal has been agreed to end US government shutdown ahead of a vote on a bill later Monday, which aims to extend government funding through Feb. 8.

“We will vote today to reopen the government,” said Schumer. The deals comes amid assurances from Republicans to consider taking action on immigration issues such as Deferred Action for Childhood Arrivals program, or DACA.

Other currencies, however, remained firm against the greenback, curbing its rebound from lows as sterling continued its trend higher.

rose 0.72% to $1.3958, its highest since June 2016 amid growing expectations that Bank of England will tighten monetary policy this year.

The euro eased from highs to trade at $1.2244, up 0.16% ahead of the Thursday. Investor expectations for shift in the central bank’s forward guidance to a more hawkish stance has eased in recent weeks.

Action Economics said it doesn’t expect major changes to the guidance as ECB president Mario Draghi is unlikely to commit to an end date for quantitative easing.

fell 0.26% to C$1.2460, while rose 0.38% to Y111.13 ahead of the Bank of Japan policy announcement Tuesday.

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