The US dollar fell on Monday, extending its decline for a second session as investors grew increasingly concerned about the risk of a government shutdown. Parts of the federal government are at risk of closing starting Wednesday, potentially disrupting key economic data releases and other critical services. Markets remain focused on the political negotiations, with President Trump expected to meet congressional leaders later today in an effort to avert the shutdown.
Treasury yields fell, with the 10-year note hovering near 4.14%, reinforcing pressure on the greenback as investors sought safety amid the political standoff. Looking ahead, traders will also closely monitor a series of key indicators this week, including job openings, ADP private payrolls and the ISM PMIs. Any upside surprise could see a dial back in rate cut expectations and lift both the dollar and yields. Conversely, soft data could intensify selling pressure and lead the currency to new multi-year lows.