The American Currency Is Under Pressure due to the Work Shutdown of the US Government

As a result of Friday’s press conference of the White House, the work of the US government was suspended. The shutdown was caused by the fact that Republicans and Democrats could not agree on extending the financing of the government work due to the contradictions in immigration and border control issues. Today, the Senate must vote in favor of a resolution on temporary government financing.

It is expected that the shutdown will not last long. However, according to Sin Kadota, an analyst at Barclays in Tokyo, if the shutdown of government work continues for several weeks, it will negatively affect the US economy. The dollar also is under pressure due to the forecasts that the growth of the global economy will exceed the US economic growth, which will lead to tightening of the soft monetary policy of the leading Central Banks.

Today, the Bank of Japan will begin a meeting on monetary policy. The solution should appear tomorrow. We recommend paying attention to the comments of the Central Bank representatives. Meanwhile, on Friday, the British pound fell against the US dollar due to the weak retail sales in the UK.

The “black gold” prices are growing. At the moment, futures for the WTI crude oil are testing $63.5 per barrel.

Market Indicators

On Friday, the main indices closed in the positive zone: #SPY (+0.45%), #DIA (+0.15%), #QQQ (+0.31%).

The 10year US government bonds yield shows positive dynamics. At the moment the indicator is at the level of 2.64%.

Eurogroup meetings at 12:00 (GMT+2:00);The volume of wholesales in Canada at 15:30 (GMT+2:00).

by JustMarkets, 2018.01.22