Currency Analyst since 2010

USD: shutdown delays tapering

ANZ: “Any undue fiscal drag coming from the shutdown would imply tapering that is further away and that’s probably a USD negative. The yen, the pound and, to a lesser extent, the euro have all benefited from the uncertainty as those currencies are reserve currencies with financial markets that can accommodate a flight to quality.”

ING: “Risk assets have been sold off in the last few days ahead of the actual news of the shutdown. It’s already priced in. The consensus view is that the government can remain shut down for a little while. They will come back and revisit ahead of the debt ceiling debate. Both sides will act in time to avert a catastrophic outcome.”


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