US shutdown begins as Senate fails to pass new budget | Forex Factory

  • US shutdown begins as Senate fails to pass new budget

    From bbc.com

    The US government has begun a federal shutdown after the Senate failed to agree on a new budget. It was unclear which way the vote would go as the midnight deadline approached, with Republicans and Democrats split on key issues. Despite last minute bipartisan meetings, the bill to fund the government until 16 February did not receive the required 60 votes. It means many government services will close down until a budget is agreed. It is the first shutdown in US history to happen while the same party controls both chambers of Congress and the White House. The last US shutdown happened in 2013 and lasted for 16 days, ... (full story)

Comment Options
Tony112
Jan 20, 2018 5:01am
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A government re-open will skyrocket USD up hence, a government shutdown is required before
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Not-KPMG
Jan 20, 2018 5:27am
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Quoting Tony112
A government re-open will skyrocket USD up hence, a government shutdown is required before
I want what you're smoking 😀😀😱😱
You think with 4-5 such shutdowns the $ will strengthen to 0.7 euro ehh?????
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Ill-b-back
Jan 19, 2018 11:53pm
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Trump wants a weak $, Trump gets a weak $
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maflip
Jan 20, 2018 5:37am
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Bleh it's not the end of the World for the US this shit happened before go to your chart in October 1 2013 nothing much really happened no big spike. This kind of drama is normal for US POLITICS. But for the EURO it's a different story there's going to be a vote on Sunday.

I really think these US Politicians should be voted as Drama Kings and Queens.
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Jr123
Jan 20, 2018 7:53am
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This is not a normal government. There is no deal making and they can't seem to agree on anything. I think the reaction in the markets on Monday will be quite interesting. I have a gold position and think it may go well.
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WhiteMouseFX
Jan 20, 2018 5:35pm
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Most of the times news are disinformation.
Most of the time when most of people expect to go down or up, the market take the opposite side.
My personal guess is, USD will go down, but not before the already started correction is finished.
Economically, what is not too good for the people could be good for the government and the currency goes up. For instance, to raise interest rates.
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NotAtrader
Jan 20, 2018 9:40am
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Quoting Jr123
{quote} I know what you mean. I've tried several brokers and hate it when they freeze up. Usually when there's huge volatility. They say its my internet connection, but everything else works just fine. All you can do is sit and wait for charts to start moving, sweating not knowing what's going on.
Man this hasn’t been a problem before, but it happens often recently mainly on Fridays and it begins to be very suspicious already. They cannot give me a good reason why this happen almost every Friday towards the end of the session. Always some funny pathetic excuses that make me throwing up.
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NotAtrader
Jan 20, 2018 1:16pm
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Quoting Pleiadian
{quote} Have a backup plan, so if your platform freezes or you lose your internet connection. I have my brokers trading desk telephone number close to hand, so I can give verbal instruction to close an order.
Yes mate. I do that too. But it isn’t supposed to work like that. We live in 2018 for Christ’s sake.
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tafadzwa02
Jan 20, 2018 2:26am
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In 2013 we had a government shutdown between 01-October and 17 October.. The GBPUSD fell from 1.6258 to 1.5889
This can actually men a strong Dollar and a big gap down .
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TraderTero
Jan 20, 2018 7:45am
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Gaps usually occur because of some unexpected news. There is no surprise in this as the outcome was quite expected. The overall short term affects to the US economy are minor. Having museums and public parks closed is not a big deal. All functions important to the society, such as border control and air traffic are working normally.

This is just political theater and actually quite normal in USA. There is also a very good chance that the issue will be resolved during the weekend.
NotAtrader
Jan 20, 2018 8:15am
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There’re was a problem with my platform and I couldn’t close my mega longs. Now I feel like a dead man walking. Let’s see what happens.
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FateAnother
Jan 20, 2018 12:10am
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Quoting sunpied
whats the impact on usd? somebody told that, shutdown strengthen usd due to the lack of money supply. is it true?
so u think usd got stronger when they have no activity? Lol, it should go down bro.
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NotAPro
Jan 20, 2018 12:35am — Edited
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Quoting sunpied
what happened to eurousd in 2013 when shutdown lasted for 16 days?
https://www.tradingview.com/chart/EU...2013-Shutdown/

A lot of sideways movement, with an overall downtrend it would seem.

Quoting sunpied
whats the impact on usd? somebody told that, shutdown strengthen usd due to the lack of money supply. is it true?
Seems counter intuitive to me, but maybe there is something to that. Apparently the dollar initially took a hit for the first few days, but then strengthened for the next week after that. I couldn't get an attached image to work, but the screenshot is available here: https://www.tradingview.com/chart/DX...2013-Shutdown/
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Davidbc
Jan 20, 2018 5:05am
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Quoting Alzuraiqi
Gap up monday to reach 1.24 for euro.
I wish lol, we'll see if the germans actually reach an agreement and then MAYBE it could happen
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FateAnother
Jan 20, 2018 12:21pm
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Quoting Not-KPMG
{quote} I want what you're smoking 😀😀😱😱 You think with 4-5 such shutdowns the $ will strengthen to 0.7 euro ehh?????
at most, it will got stronger around 100 pips only. No exageration here but we are seeing a major downside later in the USD later over the longer term too. Check US index to make sure things.
I agree with KPMG, there will be no big rally in USD despite of that.
Current condition is about the same as last year.
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Not-KPMG
Jan 20, 2018 5:24am
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What a NOT surprise!!! 😂😂

Save money!!!
So they can spend on defence contracts 💰

Quoting Not-KPMG
{quote} US debt is endless joke. Wait 8th Dec.
Let's see what Trumpy will conjure
Oh look, i said that in November 😱😱
Pretty accurate was, me thinks 👏

Now obviously the plan is to sell $$
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Not-KPMG
Jan 20, 2018 6:36am
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Quoting maflip
Bleh.... drama is normal for US POLITICS.... should be voted as Drama Kings and Queens.
Hmmm.
I see nothing normal. First Don Trumpone. 😱😱🐒
Now shutdown. 😭😭
If agreement reached - trillions of spending.
If not agreed - misery, bad economy...

So anyway bad $$
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Not-KPMG
Jan 20, 2018 10:13am
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Quoting NotAtrader
There’re was a problem with my platform and I couldn’t close my mega longs. Now I feel like a dead man walking. Let’s see what happens.
Hmm.
Depending on German stuff may jump a lot.
Then retail short
Damn i really wanted to buy the support 1.21.... But too fast buying already. Damn Japanese moves.🐒🐒😨

My broker increase spread...didn't hit my TP...

On a crypto topic - all up. Trumpy effects
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NotAtrader
Jan 20, 2018 10:50am
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Quoting Not-KPMG
{quote} Hmm. Depending on German stuff may jump a lot. Then retail short Damn i really wanted to buy the support 1.21.... But too fast buying already. Damn Japanese moves.🐒🐒😨 My broker increase spread...didn't hit my TP... On a crypto topic - all up. Trumpy effects
My broker always increase spread towards the session end. Of course the aim is to prevent hitting TP and / or get to BE level. Fokin robbers
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NotAtrader
Jan 20, 2018 4:05pm
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Quoting Pleiadian
{quote} So what is the issue, phone your broker, that is why the broker has a trading desk and a land line so you can use it. Being able to adapt an overcome is an asset as is resilience. Every efficiently run business should have a backup plan. I hired a car on line. When I went to pick up the vehicle, the next day, their system had crashed. But they were able to continue trading as they had a paper backup system, a backup plan, and supplied my vehicle without any delay and it was 2018....
The problem is that you cannot trade forex on paper these days can you?

And yes they can solve problems and help you via phone desk, but when the system has really crashed (at least this is what they say) then there is not much you can do except for changing your broker. However all of them are making food in the same kitchen I guess.

Never mind. I will be ok.
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Tony112
Jan 20, 2018 6:39pm
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US Senate to continue working to end government shutdown

41m ago
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Tony112
Jan 20, 2018 7:28pm
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Negotiations continue on Sunday to reopen
Here's where negotiations stand as government shutdown heads into a second day
CNBC 2m ago
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Tony112
Jan 21, 2018 10:14am
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Last-ditch bid to end impasse

vote will be held this Sunday
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9jatrader
Jan 21, 2018 11:53am
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Quoting NotAPro
{quote} https://www.tradingview.com/chart/EU...2013-Shutdown/ A lot of sideways movement, with an overall downtrend it would seem. {quote} Seems counter intuitive to me, but maybe there is something to that. Apparently the dollar initially took a hit for the first few days, but then strengthened for the next week after that. I couldn't get an attached image to work, but the screenshot is available here: https://www.tradingview.com/chart/DX...2013-Shutdown/

Thanks for sharing. During shutdown, USDJPY traded as usual and went bullish withing the days. Candlestick is the only solution in taking positions during uncertainty.
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maflip
Jan 20, 2018 7:23am
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Quoting Not-KPMG
{quote} Hmmm. I see nothing normal. First Don Trumpone. 😱😱🐒 Now shutdown. 😭😭 If agreement reached - trillions of spending. If not agreed - misery, bad economy... So anyway bad $$
I agree with you it's not normal. I'm talking about the US Drama which is normal for US politics except this time episode 10 of trumponomics is regarding US Government shutdown. (Or maybe I just watch too many Korean dramas)

This is bad for the US Economy if left alone in the long run but I don't think there will be a huge spike Monday. IF you don't believe me like I said go back to your chart.

If I'm wrong and there is a big gap. Oh well can't get it right all the time.
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Redeflect
Jan 20, 2018 5:20pm
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Quoting Tony112
President Trump is a good deal maker. It's mandatory for a country to have it's government running sooner or later. This news is nothing but a temporary bump. The re-open will spark up volatility which will be re-enforced with gradual rate hikes. Employment runs at full capacity and the Dow Jones is at it's highest point. Just wait and see.
no government = no President trump.
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greengp
Jan 22, 2018 10:16am
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forget about news pull the chart and trade
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Alzuraiqi
Jan 20, 2018 1:32am
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Gap up monday to reach 1.24 for euro.
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Trainman
Jan 22, 2018 7:21am
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Quoting Jr123
{quote} I know what you mean. I've tried several brokers and hate it when they freeze up. Usually when there's huge volatility. They say its my internet connection, but everything else works just fine. All you can do is sit and wait for charts to start moving, sweating not knowing what's going on.
Its probably not a coincidence. I was with FXCM several years back and their servers were programmed to ignore your orders to close a trade if the market was moving quickly against you. They blamed it on the server being overloaded, but the reality was they were trading against you.

If you are getting system freeze-ups or your orders aren't getting filled within a few seconds, dump the broker, there are far better ones out there. My favourite: Tickmill.
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WhiteMouseFX
Jan 22, 2018 7:00am
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We can speculate, but it's about only the congress people to decide.
About the USD going down, well, this is what the market wants us to believe. It may go up first just to trigger some SLs, and then up, like it always does. HOOHOOHOOHAHAHAHA (demoniac laugh)
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WhiteMouseFX
Jan 22, 2018 7:25am
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Quoting Trainman
{quote} Its probably not a coincidence. I was with FXCM several years back and their servers were programmed to ignore your orders to close a trade if the market was moving quickly against you. They blamed it on the server being overloaded, but the reality was they were trading against you. If you are getting system freeze-ups or your orders aren't getting filled within a few seconds, dump the broker, there are far better ones out there. My favourite: Tickmill.
This market has a lot of scams mate. Be careful.
It happened the same to me and other suspicious activities with IC Markets. I closed my account.
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Pleiadian
Jan 20, 2018 1:07pm
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Quoting NotAtrader
There’re was a problem with my platform and I couldn’t close my mega longs. Now I feel like a dead man walking. Let’s see what happens.
Have a backup plan, so if your platform freezes or you lose your internet connection. I have my brokers
trading desk telephone number close to hand, so I can give verbal instruction to close an order.
Reply
Pleiadian
Jan 20, 2018 3:28pm
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Quoting NotAtrader
{quote} Yes mate. I do that too. But it isn’t supposed to work like that. We live in 2018 for Christ’s sake.
So what is the issue, phone your broker, that is why the broker has a trading desk and a land line so you can use it. Being able to adapt an overcome is an asset as is resilience. Every efficiently run business should have a backup plan. I hired a car on line. When I went to pick up the vehicle, the next day, their system had crashed. But they were able to continue trading as they had a paper backup system, a backup plan, and supplied my vehicle without any delay and it was 2018.
Reply
raklian
Jan 22, 2018 10:46am
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Quoting WhiteMouseFX
We can speculate, but it's about only the congress people to decide. About the USD going down, well, this is what the market wants us to believe. It may go up first just to trigger some SLs, and then up, like it always does. HOOHOOHOOHAHAHAHA (demoniac laugh)
Different story if the credit rating agencies use this event to downgrade the US government's credit worthiness.
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XuMar
Jan 20, 2018 2:51am
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Shutdown or the worst raise debt ceiling, that's already price in from beginning at the end of last year. So it's just the matter time when the dollar will strength (although it will not strength just like before)
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Zillionaire
Jan 22, 2018 6:50am
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Quoting Jr123
{quote} I know what you mean. I've tried several brokers and hate it when they freeze up. Usually when there's huge volatility. They say its my internet connection, but everything else works just fine. All you can do is sit and wait for charts to start moving, sweating not knowing what's going on.
So, someone also experience this?
Reply
Zillionaire
Jan 22, 2018 6:55am
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Quoting Pleiadian
{quote} Have a backup plan, so if your platform freezes or you lose your internet connection. I have my brokers trading desk telephone number close to hand, so I can give verbal instruction to close an order.
Really?
Does it work?
Pls enlighten me more
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Zillionaire
Jan 22, 2018 7:04am
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Quoting Pleiadian
{quote} Have a backup plan, so if your platform freezes or you lose your internet connection. I have my brokers trading desk telephone number close to hand, so I can give verbal instruction to close an order.
Really?
Does it work?
Pls enlighten me more
Reply
sunpied
Jan 20, 2018 2:33am
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Quoting tafadzwa02
In 2013 we had a government shutdown between 01-October and 17 October.. The GBPUSD fell from 1.6258 to 1.5889 This can actually men a strong Dollar and a big gap down .
what was happened to eurousd ?
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zerotmoal
Jan 20, 2018 1:42pm
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happened with Bill Clinton before for like a week and nothing happened they came to a deal at the end of the road , they are just teasing each other "democrats-republics"
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ray4087
Jan 20, 2018 11:07pm
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Germany 4 month without government....but nothing happened to UERO hahahha.
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Aussi
Jan 20, 2018 5:05am
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Quoting Tony112
A government re-open will skyrocket USD up hence, a government shutdown is required before
well said
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Tony112
Jan 20, 2018 5:04pm
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President Trump is a good deal maker. It's mandatory for a country to have it's government running sooner or later. This news is nothing but a temporary bump. The re-open will spark up volatility which will be re-enforced with gradual rate hikes. Employment runs at full capacity and the Dow Jones is at it's highest point. Just wait and see.
Reply
Tony112
Jan 20, 2018 5:45pm — Edited
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House GOP Said to Hint at Possible Weekend Deal: Shutdown Update
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Tony112
Jan 21, 2018 12:08pm
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Inter-bank week end rate USD sky rocketing up. Nothing, nothing in FX is predicable

for EUR/USD, totally different...
Attached Image (click to enlarge)
Click to Enlarge Name: interbankweekendrate2.jpg Size: 65 KB
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9jatrader
Jan 21, 2018 12:35pm
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Quoting rashidcm2004
{quote} usdcad is falling buddy. this is wrong chart
It has been halted
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heispark
Jan 20, 2018 12:34am
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mae4206
Jan 20, 2018 10:35pm
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relax, its not the end of the world. If something bad happened, just deposit again.
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fxmfarmer
Jan 20, 2018 2:34am
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Quoting tafadzwa02
In 2013 we had a government shutdown between 01-October and 17 October.. The GBPUSD fell from 1.6258 to 1.5889 This can actually men a strong Dollar and a big gap down .
i hope this happens on mon
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bel3ouchi
Jan 20, 2018 1:21am
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We will see a zig zag move in Monday
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Redeflect
Jan 20, 2018 5:18pm
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Quoting BankRobber
Hidden
We sure are! Loooooooooooseeers.
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TheDream
Jan 21, 2018 8:31pm
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Better look at your graph and trade according to where it go.
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Jr123
Jan 20, 2018 8:28am
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Quoting NotAtrader
There’re was a problem with my platform and I couldn’t close my mega longs. Now I feel like a dead man walking. Let’s see what happens.
I know what you mean. I've tried several brokers and hate it when they freeze up. Usually when there's huge volatility. They say its my internet connection, but everything else works just fine. All you can do is sit and wait for charts to start moving, sweating not knowing what's going on.
Reply
asmadi78
Jan 20, 2018 3:11am
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EURUSD & GBPUSD - Gap up atleast 150 pips on monday.
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asmadi78
Jan 20, 2018 1:42pm
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Usd index already breakout major support
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Robertk
Jan 20, 2018 4:32am
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Quoting asmadi78
EURUSD & GBPUSD - Gap up atleast 150 pips on monday.
Do some research first, instead of jumping on assumptions
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Quantum3
Jan 20, 2018 10:52am
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Quoting sunpied
whats the impact on usd? somebody told that, shutdown strengthen usd due to the lack of money supply. is it true?

Quite the contrary, study your M2 and its correlation in this case with the USD. The debt limit should be more of a genuine concern for marketers.
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ashimkhan
Jan 20, 2018 11:25pm
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Open market USD gap down
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relaxtrade
Jan 20, 2018 1:40am
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I think it will open not dramatic
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sunpied
Jan 19, 2018 11:50pm
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whats the impact on usd? somebody told that, shutdown strengthen usd due to the lack of money supply. is it true?
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sunpied
Jan 20, 2018 12:07am
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what happened to eurousd in 2013 when shutdown lasted for 16 days?
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sunpied
Jan 21, 2018 11:01am
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SPD vote passed to talk about coalition.
What next then about eurousd
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sunpied
Jan 21, 2018 2:22pm
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Eurousd 1.2266 now
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ohakaba
Jan 20, 2018 1:18am
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Hope we wouldn't see any abnormal gap down on the dollar.
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FateAnother
Jan 20, 2018 3:35am
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Quoting tafadzwa02
In 2013 we had a government shutdown between 01-October and 17 October.. The GBPUSD fell from 1.6258 to 1.5889 This can actually men a strong Dollar and a big gap down .
gbp got different problem at that time. check other pair.
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CoolJL
Jan 20, 2018 9:35am — Edited
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Quoting maflip
...But for the EURO it's a different story there's going to be a vote on Sunday. I really think these US Politicians should be voted as Drama Kings and Queens.
SPD vote's going to be interrsting.
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rashidcm2004
Jan 21, 2018 12:26pm
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Quoting Tony112
Inter-bank week end rate USD sky rocketing up. Nothing, nothing in FX is predicable for EUR/USD, totally different... {image}
usdcad is falling buddy. this is wrong chart
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tafadzwa02
Jan 21, 2018 1:11pm
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To anyone wondering, here are a few sites that monitor live currency exchange rates over the weekend. Feel free to add any of your own.


http://www.fxstreet.com/rates-charts/currency-rates/
http://www.forex-markets.com/
http://www.xe.com/
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tafadzwa02
Jan 21, 2018 3:03pm
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Quoting sunpied
Eurousd 1.2266 now
1.2273 now
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Micc23
Jan 22, 2018 3:01am
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More exciting news for investors is that the New England Patriots pulled out yet another miracle win to reach the Super Bowl. Almost immediately Patriots Super Bowl gear sales went up in stores. Good for the economy.
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PioneerHC
Jan 20, 2018 2:45am
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Quoting sunpied
{quote} what was happened to eurousd ?
consolidation during the shutdown and then a 140ish pip spike the day after the government reopened.
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FreemanNK
Jan 20, 2018 12:39am
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So the USD is expected to go down?
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fabio6969
Jan 20, 2018 3:23am
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gbpusd buy o sell?
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silverbtc
Jan 20, 2018 4:05am
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there is a possibility, that the dollar will be deliberately supported so as not to create panic among investors.
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Trader#0E07
Jan 20, 2018 5:27am
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Quoting Tony112
A government re-open will skyrocket USD up hence, a government shutdown is required before
then again maybe traders know this and simply go to buy the "dipp" .. perhaps USD will open straight up. who knows..

my interpretation from looking at the dollar across the board is this:

low price:
USDJPY USDCHF USDCAD

high price:
AUDUSD EURUSD GBPUSD

so if anything, a major event that will spark liquidity, should bring this back to equality. but then again, we will have to wait and see.
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Salmankhan1
Jan 21, 2018 1:18am
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How about USD/CAD?
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sylvin
Jan 21, 2018 11:35am
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Seems like he will go nuclear option
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tafadzwa02
Jan 21, 2018 12:56pm
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Quoting rashidcm2004
{quote} usdcad is falling buddy. this is wrong chart
which chart are you using ?
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FXCyborg
Jan 22, 2018 2:37am
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LOL, that's one way to keep the budget down... force everyone into a non-pay leave lol

#GoTrump! LOL
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Trader#B7CF
Jan 20, 2018 4:39am
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If it will open with a gap up against usd, this will be only as an additional clue for buyers to enter the market even with better price than they were expected.
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Trader#76B6
Jan 21, 2018 10:35am
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vote is at 1 a.m. ET according to the article as well as the guardian. no idea about Canadian time.
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BankRobber
Jan 22, 2018 2:47pm
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Quoting Redeflect
{quote} We sure are! Loooooooooooseeers.
sure you are.
Reply
BankRobber
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