USD affected by government shutdown
January 22, 2018
Europe Market Movements
With the US still in shutdown and no economic data due out today, European shares are set to open sideways. Hopes however of a solution to Germany’s long standing political deadlock may boost the EUR against major currencies. In the UK, the Markit Household Finance Index fell to a four month low, hitting UK consumers in their pockets. Data released on Friday showed that retail sales in the UK were their weakest for four years in 2017.
US Market Movements
With the US government in shutdown due to disagreements between Democrats and Republicans over immigration, the USD fell against major currencies, it has now recovered some ground though, with the dollar’s index trading this morning at 90.58.
Asia/Oceania Market Movements
Market reaction to the US shutdown has been muted in Asia with the Nikkei seeing little change, closing higher by 0.03%. South Korea’s Kospi has declined by 0.72%. Australia’s S&P/ASX 200 fell but the Hang Seng has seen gains, as has the Shanghai composite.
Good news for oil traders, with the price of crude continuing to rise, partly influenced by a decline in US drilling. Brent crude futures are at $68.83 and WTI at $63.45. In a warning to crypto traders, a prominent Wall Street strategist has warned that Bitcoin could be heading for a big crash and it could lose up to 90% of its value.