For currency traders, the U.S. shutdown is making a bad year worse

For Currency Traders, the U.S. Shutdown Worsens a Difficult Year

The record-long United States government shutdown has deepened the struggles of currency traders, leading to their weakest year in decades. With key economic data remaining unpublished, the outlook for the dollar has grown increasingly uncertain.

According to a BarclayHedge index, foreign-exchange investors are facing their poorest annual performance since 2005. The lack of data has forced many to act cautiously, reducing trading volumes and delaying major strategic updates.

Even before the shutdown, major financial institutions had reported declining currency trading revenues. Goldman Sachs Group Inc., Morgan Stanley, and Bank of New York Mellon Corp. each experienced lower earnings last quarter.

“Crucial economic and market positioning statistics have not been published in weeks — including what would have been a critical, monthly reading of the U.S.”

This absence of information has made traders hesitant to make large bets on the dollar’s direction, while data-driven quantitative funds are struggling with reduced availability of high-quality inputs for their models.

Impact Summary

Foreign-exchange trading performance has hit its weakest level since 2005.
Major Wall Street banks report lower trading revenues.
Data delays from the government shutdown reduce confidence in market forecasts.

Author’s Summary

The extended U.S. government shutdown has amplified challenges for currency traders by cutting off essential data, leaving markets uncertain and profits shrinking.

Financial Post — 2025-11-07

For Currency Traders, the U.S. Shutdown Worsens a Difficult Year

Impact Summary

Author’s Summary

More News