Argentina’s industrial output dropped by 4.4% in August compared to the same month last year, a decline from the previous rate of 1.1%. This indicates a significant downturn in the industrial sector. The People’s Bank of China has set the USD/CNY reference rate at 7.1102, up from 7.1055. Furthermore, China’s Commerce Ministry is planning stricter regulations on rare earth exports.

The GBP/USD Currency Pair and Government Shutdown

The GBP/USD pair has seen slight gains, staying above 1.3400 while the US government remains shut down. The shutdown is also affecting gold prices, which are holding steady above $4,000. In international news, US President Donald Trump announced that Israel and Hamas have started discussions on a Gaza peace plan. Due to fiscal worries in Japan, the USD/JPY has risen past 152.50. The EUR/USD is testing the support level of 1.1600, and Ethereum has returned to a price of $4,500. FXStreet warns that investing comes with risks, including the possibility of losing money. It advises thorough research before making any investment and indicates that this content reflects the authors’ views, which do not necessarily represent FXStreet’s official position.

Market Uncertainty Amid US Government Shutdown

The US government shutdown has now entered its ninth day, creating considerable uncertainty in the market and higher volatility for traders. Options on major indices like the S&P 500 could be a smart way to navigate this situation. For context, the 16-day shutdown in October 2013 caused the VIX, a fear measure, to rise over 30% in just two weeks. Gold is a significant asset to monitor, remaining steady above $4,000 as a safe haven, although the news of a potential Israel-Hamas peace plan is offering some resistance. Its price is likely to be very responsive to updates about the shutdown’s duration, making call and put spreads a practical trading strategy. Historical trends show gold rose more than 3% during the 2013 shutdown amid economic uncertainty. In currency markets, the dollar’s weakness varies. The USD/JPY has climbed above 152.50 due to lasting fiscal concerns in Japan, indicating that the yen carry trade is still a strong influence. This reflects dynamics from 2023, where the pair stayed above 150. We foresee continued upward movement in this pair as long as Japan’s policy and debt issues are not addressed. Aside from major headlines, other markets are showing signs of caution. China’s intention to tighten control over rare earth exports may lead to future supply issues in technology and defense sectors, reminiscent of notable price spikes following similar restrictions in 2010. Coupled with Argentina’s weak industrial data, traders should be cautious about risks in emerging markets and certain commodity-linked assets. Create your live VT Markets account and start trading now.

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