According to the ADP employment survey, 32,000 jobs were shed in the US in September. This was a stark contrast to expectations from a Bloomberg survey, which had forecast a gain of around 50,000 jobs.
The US government has officially shutdown. USD and US equity futures are down. If the shutdown is brief, the Fed will ignore it. However, a prolong shutdown (more than two weeks), increases the downside risk to growth and raises the likelihood of a more accommodative Fed.
The US Dollar (USD) is showing signs of stabilization heading into Wednesday’s FOMC, with modest gains against most of the G10 currencies as it attempts to claw back a portion of this week’s losses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.