17 October 2025,05:06
Daily Market Analysis New
17 October 2025, 05:06
*U.S. government shutdown extends into a record duration, delaying key economic data
*Fed Chair Powell signals potential rate cuts amid weak labor outlook
*U.S.–China trade tensions add further pressure to market sentiment
Market Summary:
The U.S. Dollar Index (DXY) continued its sharp decline this week, extending losses as the prolonged U.S. government shutdown dampened confidence in the nation’s economic outlook. The stalemate in Congress persisted after senators failed for a 10th time to advance the GOP funding bill, forcing the shutdown to extend into next week. The ongoing deadlock has raised concerns about government inefficiency and fiscal stability, further weighing on the greenback.
The shutdown has also halted the release of major U.S. economic indicators, leaving investors and policymakers with limited data visibility. This uncertainty has complicated the Federal Reserve’s rate-setting process, though Chair Jerome Powell recently signaled that rate cuts remain possible, citing a softening labor market and growing downside risks to the economy.
At the same time, U.S.–China trade tensions have resurfaced, adding another layer of volatility to the market. President Donald Trump confirmed that the trade war “is already underway,” with the tariff ceasefire set to expire in November. Failure to reach a deal could worsen the U.S. growth outlook. Trump is still scheduled to meet Chinese President Xi Jinping later this month in South Korea, offering a potential opportunity to ease tensions.
Technical Analysis
The Dollar Index is trading lower after confirming a double-top breakout and falling below its upward trendline, suggesting continued bearish bias. The index is now hovering around the key support level of 98.15, where some stabilization may occur.
If bearish momentum persists, the next downside target lies near 97.55. However, the MACD indicates weakening downside pressure, and the RSI at 29 suggests the index has entered oversold territory, raising the probability of a short-term rebound toward 98.80.
Resistance level: 98.80, 99.55
Support level: 98.15, 97.55
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