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EUR/USD holds steady as weak U.S. jobs data offsets shutdown risks
Thursday, 2 October 2025 05:11 WIB | EUR/USD |EUROPE

EUR/USD is steady late during the North American session as investors digest a soft jobs report and shrugs off the shutdown of the US government. The lack of an agreement between the White House and Democrats would prolong the shutdown and delay US economic data releases. The pair trades at 1.1720 unchanged.

US ADP National Employment Change in September was dismal and highlighted the weakness of the labor market. Business activity in the manufacturing sector in the US, improved but contracted for the seventh straight month.

Regarding political turmoil in the US, Vice-President JD Bance said that he does not think the shutdown will last long, vowing to do everything possible in the coming weeks to ensure people receive essential services.

Meanwhile, Fitch Ratings said that a government shutdown does not have near-term impact on the "AA+ stable" creditworthiness of US debt. The agency revealed that the shutdown is estimated to reduce GDP growth by 0.1-0.2% per week.

In the Eurozone, the HCOB Manufacturing PMI for September exceeded estimates, while the Harmonized Index of Consumer Prices (HICP) for the bloc ticked up. Despite this, the European Central Bank (ECB) is expected to remain on hold after President Christine Lagarde said that the risks to inflation "appear quite contained in both directions."

Source: Fxstreet

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