- US Dollar and S&P both rally Friday, then gap lower over the weekend
- Failure to end a government shutdown brings the default possibility a step closer
A look back at the past 24 hours of Forex trading using movements in the US Dollar Index:
US Dollar 15-Minute 08:00 10/04 to 08:00 10/07 EST
Charts created by Benjamin Spier using Marketscope 2.0
The Dow Jones FXCM Dollar Index rallied back above 10,500 on Friday, but erased much of those gains in a weekend gap, as traders’ hopes for a deal to finish the government shutdown waxed and waned. US equity markets also seemed to take a breather from worrying about the ongoing shutdown and found gains on Friday after two down days.
However, those worries seemed to return with a weekend gap lower in today’s US equities open. The government’s failure to pass a spending bill over the weekend now makes the possibility of a US debt default on October 17 a bit more real.
It was that rise and fall in equity markets that we also saw in US Dollar trading on Friday, and then again after the new week’s open. Below, I placed the S&P futures chart for the past few days next to US Dollar Index trading, and the Friday rally and weekend gap can be seen in both indexes.
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-- Written by Benjamin Spier, DailyFX Research. Feedback can be sent to email@example.com .