The dollar suffered because of the shutdown in the us government

  • And
  • +A

After a volatile session on wall street which proceeded in the style of “roller coaster”, the American indexes at the last moment were able to escape in the growth zone, thus clearing the way for the rise of Asian venues. However, we may continue to see a corrective movement after the outlet, rather than an improvement in investor sentiment. This is evidenced by the modest and uneven rise of the indexes, and the continuing demand for protective the yen.
Japan’s Nikkei 225 following the session, I could not resist in the area of growth and dipped by 0.3 percent after a rally of nearly 4% in the previous session, China’s Shanghai Composite grew within 0.4%, Hong Kong Hang Seng rose a modest 0.14% while South Korea’s Kospi added nearly 0.5%. Europe to start today’s session on a neutral note.
The dollar remains under pressure, despite the fact that European currency is not their reasons for growth. On the contrary, around the pound tension in the context of Brekzita, where the labour party insist on reducing the Christmas holidays and voting in the Parliament, and the business confidence in the country fell to 1.5-year lows. But the pound, which yesterday managed to stay above the 1.26 level again, aiming for the mark of 1.27.
The Euro, meanwhile, ignored the “dovish” economic Bulletin, the ECB continues to increase, approaching the coveted 100-day moving average, which blocks the way to 1.15. Today’s comments by the ECB Knot that core inflation in the Euro zone still shows no signs of life, too, failed to recapture the interest to buy the single currency. And all because the dollar is more motivation to reduce. The currency is in tension because of the shutdown, and completes the picture of trump’s pressure on the fed. So at least until then, until the government returns to full operation, “American” will remain vulnerable.
____________
Nathan Lambert
Head of research,
Global FX