Government shutdown quickly comes to an end.

On the 3rd of February, Donald Trump signed a funding bill which ended a partial government shutdown that lasted four days. Making this a much quicker resolved shutdown compared to the one we experienced just a few months ago.

The reason for the shutdown was due to many disagreements regarding how immigration enforcement was being funded. Democrats were pushing for reforms for body cameras, more regulation like stronger warrant requirements, and more accountability measures for Immigration and Customs Enforcement (ICE). A big reason for why all of the focus shifted towards this was because of a very controversial incident that happened in Minneapolis. For many reasons, these demands were not all met.

The two very significant assets that were affected by this was the U.S dollar, which is expected because it is a U.S government shutdown. Investors were shaken and the dollar had some instability which affected the way a lot of investors see it, and many talks have been happening where investors are seeing the dollar less and less as a safe haven, and they are looking outward for a new option as a safe haven. This really shook the dollar, and the last few months havent been the best for it, this just added even more fuel to the fire. Gold was affected in the opposite way, investors bought gold because it was viewed as a safe haven, even though it is in the midst of a big correction. A third mentioned would be silver which also saw some investors rushing towards it.

A big problem recently has been American politics which is making headlines all around the world, this is causing huge instability for the U.S dollar, and it has been happening constantly throughout the last few months which is a big reason for the weakened dollar.

I do believe that soon the dollar will stabilize again, the biggest factor is just all the fundamentals. As soon as America stops being in the eyes of everyone for political reasons all the time, then the dollar would not receive such bad sentiment from the market, but for now, it doesnt seem like America would be in the shadow very soon.

This is a good indication for things like Commodities and Crypto, which will see an influx in investors in the coming months while they are searching for a new safe haven potentially. So, positioning yourself now in those sectors could be beneficial in the long run.