Government Shutdown

An article by Gus    No Comments

Government shutdown is just but a few hours from happening unless the Republican Party and Democratic Party can agree on a new budget before we cross the debt limit set by Congress at $14.29 trillion. Right now we are hoping for a deal to come in tonight or over the weekend, this will let us do some good plays once Monday comes around.

The lack of agreement on the 2011 budget will shut down the government for short period of time but may last a few months till the summer time. I will be keeping a close eye on the dollar and see what exactly are possible trades once this all goes through. But if the shutdown does happen the dollar will take one crazy beating and drop a nice amount.

With the Yen getting a beating and the euro just going downhill it is about time we start looking at other currency pairs such as the Aussie dollar and New Zealand dollar which have been showing promising gains over the past few months. Only time will tell over the next few hours to see what exactly happens. Keep a close eye this weekend, no matter what happens Monday will be one crazy day.

Gus FX