Cookie Consent by FreePrivacyPolicy.com

USA Government shut down and the dollar Index movement

US session headed with important release ahead
DXY to Complete B & C Correction Waves
25 bps BOE rate cut by September 2020 -BOE Policymakers hinted
USDJPY and Elliot
Missile launch from North Korea are in error-NHK reports
USA Government shut down and the dollar Index movement

  • Knowing about US shutdown shortly
  • Recent emergence of issue.
  • Technical outlook on USD Index

In United States politics, a government shutdown occurs when Congress and the President fail to pass appropriations legislation funding government operations and agencies.Government shutdowns have the effect of disruption to government services and increased cost to the government due to lost labor. During the 2013 shutdown Standard & Poor’s, the financial ratings agency, stated on October 16 that the shutdown had “to date taken $24 billion out of the economy,” and “shaved at least 0.6 percent off annualized fourth-quarter 2013 GDP growth.

Effects

 While government shutdowns prior to the 1995–1996 shutdowns had very mild effects, a full federal government shutdown causes a large number of civilian federal employees to be furloughed. During a government shutdown, furloughed government employees are prohibited from even checking their e-mail from home. To enforce this prohibition, many agencies require employees to return their government-issued electronic devices for the duration of the shutdown.

Economic data shows that despite the inconvenience arising from a protracted government shutdown (such as the one seen in 2013), any GDP damage or falling job market confidence that results can be managed with relative ease. For example, despite seeing payment delayed to 1.3 million workers, and 800,000 employees locked out,confidence in the job market recovered within a month of the 2013 shutdown,and GDP growth slowed only 0.1-0.2%

 

 The Recent Issue

The U.S. government shut down at midnight on Friday after Democrats and Republicans, locked in a bitter dispute over immigration and border security, failed to agree on a last-minute deal to fund its operations.
This issue is still in debate and we have to keep watching it.for traders lets have look on dollar Index where it would head, possibility.

 

Technical outlook On USD Index

The Corrective pattern is still in process,as fed indicated the several rate hikes in future the correction likely to continue downside in the USDIndex
The recent pattern in USDIndex in which we got a break downside from 91/92 levels and possible continuation downside according to corrective wave C ,the correction started since the Jenet yellen lead Federal bank started increasing interest rates.
Finally,the clue getting to stay selling pressure on USDIndex as the
improving global economy is poised.

Best Forex Brokers Lowest Spreads

COMMENTS

WORDPRESS: 0