Dollar Slightly Higher as US Government Shutdown End Nears

Group 1: Dollar Index and Economic Indicators - The dollar index (DXY00) rose by +0.06% on Wednesday, supported by hawkish comments from Atlanta Fed President Bostic, who favors keeping interest rates steady [1] - The dollar is under pressure due to signs of a potential resolution to the US government shutdown, with the Senate passing a temporary continuing resolution [2] - The markets are pricing in a 64% chance that the FOMC will cut the fed funds target range by 25 basis points at the next meeting on December 9-10 [3] Group 2: Euro and ECB Commentary - The EUR/USD rose by +0.06% on Wednesday, driven by hawkish comments from ECB Executive Board member Schnabel, who stated that interest rates are "absolutely" in a good place [4] - Central bank divergence is supportive of the euro, as the ECB is seen as largely finished with its rate-cut cycle, while the Fed is expected to cut rates several more times by the end of 2026 [4] - Schnabel indicated that there is positive momentum in the Eurozone economy and inflation risks are slightly tilted to the upside, with swaps pricing in a 4% chance of a -25 basis point rate cut by the ECB at the December 18 policy meeting [5]