Why is the US dollar weak (and Australian dollar strong?)

Monday, 22 January 2018

News flow over the weekend was DXY bearish and EUR bullish as the US government shutdown is proceeding, via Bloomie:

The House and Senate are back in session Sunday with a federal government shutdown in its second day amid a spending-bill impasse in Congress. The House is supposed to be on recess this week, but members stayed in Washington as negotiations continue.

Meanwhile, EUR gets a lift, via Reuters:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.