EUR/USD Outlook Amid US Shutdown Risks

The EUR/USD outlook US shutdown is currently in focus as the pair trades near 1.1750, posting gains for a second straight day. The Euro is going up because the US Dollar is getting weaker. In Washington, leaders are still arguing about a funding bill. If they don’t agree by Wednesday night, the US government could shut down.

This possibility is making markets uneasy. A shutdown would not only stop many government activities but could also delay key economic reports. One big concern is the Nonfarm Payrolls (NFP) jobs report due Friday. Experts warn it may be postponed, which would create more uncertainty and add to the FX risk from US debt & shutdown. Traders depend on this report to guess the Federal Reserve’s next moves, so a delay could push investors to avoid risk and cause more market volatility worldwide.

Meanwhile, Europe’s economic calendar brings some relief for the Euro. German and Eurozone inflation figures will be released this week, while the EU’s September Economic Sentiment Indicator already showed a small improvement, rising to 95.5. These updates will help shape the EUR USD price forecast 2025 shutdown scenario, as investors weigh European resilience against US instability.

On the technical side, EUR/USD looks neutral but slightly positive in the short term. The price is having trouble moving above its 100 SMA, while it is finding support near the 200 SMA at 1.1690. Indicators show that buyers are there, but they are not very confident because of the uncertain US political and economic situation.

In summary, the impact of US government shutdown on dollar remains the dominant theme. If the shutdown occurs and delays key data, the Euro could gain further strength against the Dollar. However, investors remain cautious until both US fiscal negotiations and European inflation data provide clearer direction.