Momentum trades fade as nerves jangle across markets
With the US government shutdown dragging into a 22nd day, statistical agencies and the Federal Reserve under communications blackouts, and the precious metals complex melting down, the dollar is trading sideways against a basket of its peers this morning. Punters in prediction markets are betting that the government will remain closed until mid November, and the political tea leaves aren’t looking promising. In contrast with prior episodes, polls are showing that voters think both Republicans and Democrats share the blame for failing to find a funding solution, and the president’s approval ratings are holding firm, suggesting that the forces that...