{"id":70122,"date":"2023-09-27T11:22:28","date_gmt":"2023-09-27T08:22:28","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=70122"},"modified":"2025-12-02T13:22:51","modified_gmt":"2025-12-02T11:22:51","slug":"us-government-shutdown-to-be-avoided","status":"publish","type":"post","link":"https:\/\/www.ironfx-cn.com\/id\/us-government-shutdown-to-be-avoided\/","title":{"rendered":"US Government shutdown to be avoided?"},"content":{"rendered":"

The US Government is facing a potential shutdown, as early as October 1st<\/sup>, however the US Senate, advanced legislation yesterday with bipartisan support, which is a stopgap measure, meant to provide the House of Representatives more time to reach an agreement, whilst avoiding a potential Government shutdown. On another note, Fed Governor Bowman stated yesterday that \u201cThese increased cost pressures underscore the importance of the Federal Reserve\u2019s efforts to fight inflation\u201d, implying that the high rent burden is a justification for the Fed to ease inflationary pressures, which could potentially be translated into a slightly hawkish rhetoric by the Governor, which may support the dollar. Over in the US Equities market, the FTC sued Amazon(#AMZN), alleging that the company illegally used its monopoly power to overcharge consumers whilst minimizing competition and taking advantage of sellers on its marketplace. Furthermore, the FTC alleges that Amazon (#AMZN) punishes sellers that discount heavily by \u201chiding\u201d them from its search results and essentially \u201cforcing\u201d vendors to use Amazon\u2019s own \u201ccostly\u201d logistics network. The lawsuit could potentially weigh on the stock as the company may be forced to re-organize its business practises which could weigh on the company\u2019s profits in the long run. Over in Asia, the BOJ\u2019s July meeting minutes hinted that the bank may continue with its ultra loose monetary policy, with the banks members anticipating that the Japanese economy is on track to recover moderately for the time being. Furthermore, USD\/JPY continues to fluctuate around $149, which as we stated yesterday may be reaching levels upon which the Government had previously intervened and as such, could lead to Government intervention in order to safeguard the Yen. In Europe, we highlight the speech by ECB Holzmann who stated yesterday that \u201cIt is unclear whether we\u2019re at peak rates yet\u201d implying that the bank may have not reached its terminal rate and as such may have opened the possibility for further rate hikes by the ECB which could support the EUR.<\/p>\n\n\n\n

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