020 7898 0500Donald Trump started the week by offering some advice to Democrats, even as the government prepared for another shutdown
within a week. Last week, it looked as if Democrats and Republicans were on course for a deal that funded the government
and supported border security. While there was no offer of funding for a border wall, it looked as if Trump might agree to
the proposals.
However, it now looks as if an impasse has been reached, with representatives from both sides saying they were not
confident a deal can be reached before the deadline. The temporary funding Trump signed off only lasts until 15 February,
so something must be agreed by then. Otherwise, 800,000 federal workers will again be temporarily unemployed or asked to
work without pay.
Still, the dollar managed to climb higher against sterling and the euro. Today, Federal Reserve chair Jerome Powell is set
to deliver a speech, but it is otherwise quiet. Tomorrow we will see the inflation rate for January, which is expected to
drop to 2.1% from 2.2% the previous month.
For more on currencies and currency risk management strategies, please get in touch with your Smart Currency Business
trader on 020 7898 0500 or your Private Client trader on 020 7898 0541.
