USD mixed as government reopening provides limited relief to greenback

The US dollar is experiencing mixed performance across major pairs following the resolution of government shutdown concerns, with EUR/USD rising 0.15% to 1.0845, GBP/USD declining 0.2% to 1.2680, while AUD/USD and NZD/USD show modest gains of 0.1% each. The greenback's muted reaction reflects market participants' focus shifting to upcoming economic data and Federal Reserve policy implications. Despite avoiding fiscal disruption, the dollar faces headwinds from expectations of potential Fed rate cuts in 2025 and lingering concerns about US fiscal sustainability. Asian currencies showed particular strength, with USD/JPY falling 0.3% to 155.20 as safe-haven demand eased. Technical analysis reveals the DXY (Dollar Index) struggling to break above 106.50 resistance, with support at 105.80. Traders are now positioning for this week's US CPI data and retail sales figures, which could provide clearer direction for dollar pairs amid evolving monetary policy expectations.