- The prospect of a US government shutdown should be a mild USD negative – ING
Market news
28 September 2023
The prospect of a US government shutdown should be a mild USD negative – ING
The Dollar continues its relentless grind higher. Economists at ING analyze Greenback’s outlook.
DXY looks like it can grind to 107.00/107.20
In theory, a US government shutdown should be slightly Dollar-negative in that it provides a hit to activity and not to US creditworthiness. But it is going to take a lot to turn the Dollar and it could well stay bid into mid-October when US corporates in California need to pay their taxes.
DXY looks like it can grind to 107.00/107.20 and perhaps the biggest threat to the Dollar is the Bank of Japan selling $20-30bn near 150 in USD/JPY as Japanese officials watch FX 'with a strong sense of urgency'.
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