Fanon: End of US government shutdown could end dollar rally

Cre ́ dit Agricole said the dollar's rally since October will face a major test as the US government shutdown may be coming to an end. The bank pointed out that once the US government shutdown ends and economic data is released again, the weak data may highlight its negative impact on the economy and fuel dovish arrogance. In addition, the dollar's liquidity premium may subside as the government shutdown ends and the Treasury's cash hoarding is lifted, which also deprives the dollar of another support factor.