As you already know the government was shut down for more than 35 days, which did quite a number on the USD. It was expected that as soon as Trump and the Democrats came to an agreement about the wall, the government shut down would end and everything would fall back in place. Well, the agreement has come back, but the USD hasn’t even bounced back, even after suffering a tumble last month. Why?
EUR/USD still the most popular
Despite the shutdown, people still hold their positions on the EUR/USD trades. However, “held” is the keyword here. In most cases, people just kept what they had and bought some USD while it was down, in hope of it increasing in a month or so. But a lot of criteria needs to be considered regarding the stable price point. Many government branches were simply not working, including the majority of the National Treasury and the Central bank. Therefore, the funds have been sitting there waiting for somebody to pay attention.
The customer support during these times was virtually non-existent even for brokers, as they had no clear answer to the complaints about withdrawals.
What’s happening with the USD
After so much pressure on the USD, “The Shutdown”, “The trade war” and everything else, it’s remarkable how it still managed to stay afloat. In the near future, however, it could suffer some damage again as even if there was an agreement, it is doubtful that the wall will indeed be constructed, which can warrant another shutdown. If it is built, then that money will come from the National budget, meaning that the USD may tumble a bit, but not too seriously. At this moment, it’s best to just wait for any additional information about the agreement and hope for the best. There are very few alternatives as well. As the GBP is suffering as well, thanks to the newly denied Brexit deal, plunging the UK political sphere into chaos.
Overall it has been a tough month for both brokers and traders and there is no light at the end of the tunnel yet.