US: Government shutdown to dominate the domestic narrative this week - ING

The US government shutdown will dominate the domestic narrative this week, with the question now turning to how long any impasse between the President and the Democrats will continue, suggests the research team at ING.

Key Quotes

“A swift resolution is proving somewhat difficult given the current ‘blame game’ taking place on Capitol Hill; the looming November midterm elections mean that both sides of Congress may be first looking to save face with a deeply polarised US electorate.”

“The political woes working against the US dollar have become too difficult to fight – and with the more economically damaging debt ceiling issue still to come in late February/early March – the US dollar may be waiting a while for any political reprieve. 4Q US GDP (Fri) and Fed talk may be a sideshow for markets.”