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Dollar falls on U.S. government shutdown, now on pace for worst annual decline in 22 years

1. Dollar held gains after positive U.S. economic data. 2. Government shutdown raised concerns about potential economic impacts. 3. U.S. dollar index down 10% for 2025, marking historical lows. 4. Political uncertainty increased pressure on the dollar. 5. Gold futures reached an all-time high, surpassing $3,900 an ounce.

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FAQ

Why Bearish?

The government's shutdown adds economic uncertainty. Historical trends show shutdowns often weaken market indices like the S&P 500.

How important is it?

Market sentiment is impacted by economic uncertainties, which can influence S&P 500 performance.

Why Short Term?

Immediate effects from the shutdown are anticipated; recovery may follow stable resolutions. Past incidents show quick recoveries post-shutdowns.

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