EUR/USD recovers some lost ground to near 1.1650 amid prolonged US government shutdown

• EUR/USD rebounds to near 1.1645 in Thursday’s Asian session.

• A prolonged US government shutdown weighs on the US Dollar. 

• The political crisis in France might cap the upside for the major pair. 

The EUR/USD pair recovers some lost ground around 1.1645, snapping the three-day losing streak during the Asian trading hours on Thursday. An ongoing US government shutdown undermines the US Dollar (USD) against the Euro (EUR). The US Federal Reserve (Fed) Chair Jerome Powell is set to speak later on Thursday. 

It has been nine days since the US government shutdown began on October 1, owing to a failure by Congress to agree on a new budget by the September 30 deadline. The Bureau of Labor Statistics and the Bureau of Economic Analysis have suspended data collecting and reporting, which complicates the Fed's decision-making on interest rates and businesses' ability to make informed decisions. This could drag the Greenback lower and act as a tailwind for the major pair in the near term.

Minutes from the Fed's September meeting released on Wednesday showed that a majority of policymakers supported the September rate cut and signaled further reduction later this year. Nonetheless, some Fed officials favored a more cautious approach, citing concerns about inflation.

On the other hand, the political crisis in France after the shock resignation of France’s Prime Minister Sebastien Lecornu and his government could undermine the shared currency. France’s President Emmanuel Macron is under pressure to call snap parliamentary elections or resign as former allies join his opponents in demanding he act to end a political turmoil in the Eurozone's second-largest economy.