{"id":120218,"date":"2018-01-23T06:41:14","date_gmt":"2018-01-23T11:41:14","guid":{"rendered":"http:\/\/countingpips.com\/?p=120218"},"modified":"2018-06-01T15:43:51","modified_gmt":"2018-06-01T15:43:51","slug":"appetite-for-risk-returns-as-u-s-government-shutdown-ends","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/appetite-for-risk-returns-as-u-s-government-shutdown-ends\/","title":{"rendered":"Appetite for risk returns as U.S. Government shutdown ends"},"content":{"rendered":"
January 23, 2018<\/div>
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Article by ForexTime<\/a><\/p>\n

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The rally in Asian equities resumed on Tuesday taking the lead from Wall Street after U.S. government shutdown came to an end on Monday. Although reaching a deal to fund the government for another 17 days is positive news, it isn\u2019t necessarily the key driver of investors\u2019 decisions. After all, government shutdowns have little or no impact on corporate earnings, and during the previous three, stocks still moved to the upside. However, a longer-term solution is required as we get closer to the debt ceiling. Failing to raise the borrowing limit would lead to a technical default, send yields on Treasuries higher, and potentially lead to a downgrade of U.S. credit rating.<\/p>\n

Meanwhile, investors are likely to ignore the overstretched valuations and continue moving with the flow. Many factors likely to keep fueling the rally, including positive earnings, Merger and Acquisition deals, and the upsurge in global growth. The IMF joined the party yesterday raising its outlook for economic growth in 2018 and 2019 to 3.9%. That represents an upgrade of 0.2% for each year.<\/p>\n

BoJ: No Change in policy<\/strong><\/p>\n

The Bank of Japan decided not to surprise markets by keeping monetary policy unchanged. Traders who were speculating on early withdrawal of stimulus didn\u2019t receive any signs of one. Given that price projections remained unchanged indicates that the exit of unconventional monetary policy isn\u2019t likely to occur anytime soon, despite the BoJ announced earlier this month it was slightly reducing the purchases of long-dated JGB\u2019s. The lack of surprise kept the USDJPY trading within a range of 50 pips during the Asian session.<\/p>\n

Sterling pops above $1.4<\/strong><\/p>\n

The British Pound attracted most of the traders\u2019 attention after breaking above $1.4 earlier today. The 1.4 is not only a psychological level, but it has also been considered a key support level during the past three decades prior to Brexit vote. Although a lot of the currency\u2019s strength is attributed to dollar\u2019s weakness, the Pound is the best performing major currency this year, and it\u2019s up 1.35% against the Euro YTD which is a better proxy for Brexit negotiations.\u00a0 With only tier-2 economic data due to release today I don\u2019t expect to see big moves, however, I still believe there\u2019s more upside potential if Brexit talks continued to move forward when they resume in March.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer:\u00a0<\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime The rally in Asian equities resumed on Tuesday taking the lead from Wall Street after U.S. government shutdown came to an end on Monday. Although reaching a deal to fund the government for another 17 days is positive news, it isn\u2019t necessarily the key driver of investors\u2019 decisions. After all, government shutdowns […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-120218","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=120218"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120218\/revisions"}],"predecessor-version":[{"id":120224,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120218\/revisions\/120224"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=120218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=120218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=120218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}