Surprise, the USD rallies on government shutdown drama [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

The US yields rose, and the dollar extended gains yesterday as the looming US government shutdown drama got the only remaining big rating agency company Moody’s to sound cautious about the US’ AAA rating. The US 10-year yield advanced past the 4.55% level, the US dollar and the S&P500 gained.

Yesterday’s renewed dollar rally pushed the EURUSD below a critical Fibonacci level yesterday, sterling, franc, and yen also extended losses against the greenback. Gold’s trend and momentum indicators turned negative, and the precious metal is about to show a death cross formation on daily chart.

In energy, the barrel of US crude stabilizes around the $90pb, the daily MACD index fell to the negative territory for the first time since the beginning of September, and the impact of US shutdown drama on growth outlook, and the deepening real estate crisis in China. Nat gas futures are under renewed buying pressure on extension of Norwegian supply outages. And the Eurozone countries will be releasing latest inflation updates, later this week, in this chaotic environment.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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