US Shutdown Deepens Challenges for Currency Trading
WASHINGTON – The longest US government shutdown on record is contributing to the worst year for currency traders in decades. A lack of published economic data has obscured forecasts for the US dollar.
Impact on Foreign Exchange Market
According to the BarclayHedge index, foreign-exchange investors are projected to experience their poorest annual results since 2005. The slowdown was evident even before the data freeze affected Wall Street.
- Major banks like Goldman Sachs Group, Morgan Stanley, and Bank of New York Mellon reported declines in currency trading revenues in the last quarter.
- Key economic and market positioning data have not been released for weeks due to the federal shutdown.
Consequences for Traders and Strategies
Traders have become more cautious, refraining from making large wagers on the dollar's direction. Quantitative funds relying on computer-driven models face reduced access to reliable data, delaying updates to strategic forecasts.
"Foreign exchange volatility has fallen well below long-term averages – a far cry from the wild swings sparked by US President Donald Trump’s global tariff announcement in April."
Summary
The prolonged US government shutdown restricts vital economic data, causing currency traders to face their toughest year since 2005 amid reduced market volatility and cautious betting.
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