• Shutdown not having major affect on greenback
  • Eyes are on Bank of Japan interest rate decision
  • Impact of Canadian wholesale numbers to be seen

Dollar shrugs after government shutdown

The U.S. government shutdown last Friday caused political theater and volatility among politicians over the weekend.

The next vote on a bill to end the closure will be today at 12PM EST. Due to the shutdown, we are going into the week with a weaker greenback, but the currency is not largely harmed. The numbers we see this morning are near a three-year low for the dollar, but the U.S. equity markets are still setting new records. U.S. Treasury yields continue to nudge higher as well.

JPY back on the radar

Later this week, we will see the BoJ coming out with news relating to their interest rate decision and their monetary policy statement, giving the markets a fresh direction.

So far, USD/JPY has been able to hold its neck above the 110s, but is still struggling to go above the 111s. Brushing off the U.S. government shutdown last Friday, the dollar is beginning to strengthen today after BoJ announced their policy will remain the same. However, the markets believe reality will set in and are skeptical of BoJ’s decision to continue easing.

USD slips up to Canadian counterpart

Although Canada released negative wholesale numbers, the USD is still feeling the impact of the government shutdown. Wholesale numbers for Canada came out 0.3% lower than expected.

These numbers are not a major trigger in global markets, but because they are coming from a neighboring country, it gives a key indication as to how well Canadian wholesalers are doing. While the value of sales made by wholesalers is poor, the greenback’s slip is not slowing down.

– Cole Estrate, The WorldFirst Team