US government shutdown ends…what next?

• Historic government shutdown ends after 43 days
• Volatile storm could be brewing as delayed data released
• USD, US equities, Gold and Cryptocurrencies to see volatility
• Traders currently pricing in 55% of Fed cut in December

Just so you know…US President Donald Trump has signed a bill ending the longest government shutdown in the country’s history.

After a 43-day shutdown that began on October 1st, the government is set to resume.

According to historical data, the end of a government shutdown has typically been followed by a stock market rally.

Indeed, this removes an element of uncertainty however, a volatile storm could be brewing for markets.

It’s worth noting that the shutdown is expected to have cost the economy $15 billion a week with the Congressional Budget Office projecting it to lower real GDP growth in the current quarter by 1.5%.

Markets may be thrown on a rollercoaster ride as the government resumes releasing economic figures including the two delayed US NFP reports.

Considering how the delayed data dump may influence Fed cut bets for December, this may rock the USD, US equities, Gold and even cryptocurrencies.

• Should data flag weakness in the US economy, this could weaken the dollar and boost gold as Fed cut bets for December jump. US equities may see some weakness before rallying on expectations around lower rates.

• Stronger than expected data could boost the USD and weaken gold as expectations around lower US rates cool. US equities may initially rally on the positive news before slipping on cooling Fed cut bets.