US Shutdown Deepens Worst Year for Currency Trading Since 2005
WASHINGTON – The record-breaking US government shutdown has pushed currency markets into their toughest year in two decades, as the absence of key economic data leaves traders uncertain about the outlook for the dollar.
Foreign-exchange investors are heading toward their weakest annual results since 2005, according to a BarclayHedge index. The negative trend was already noticeable before the data blackout, with major financial institutions such as Goldman Sachs Group, Morgan Stanley, and Bank of New York Mellon reporting lower revenues from currency trading in the previous quarter.
“Crucial economic and market-positioning statistics have not been published in weeks.”
This lack of information has made traders reluctant to take large positions on the dollar’s direction. Quantitative funds have also been hampered by the shortage of reliable data, and analysts have been forced to delay updating their market forecasts.
Consequently, foreign-exchange volatility has dropped well below historical averages, a stark contrast to the sharp fluctuations that followed President Donald Trump’s global tariff announcement in April.
Author’s Summary
The prolonged US shutdown has left currency traders without vital data, severely curbing market activity and deepening the worst trading year since 2005.