With just hours to go before the federal government could shut down, here's how to trade this very unusual event risk.
Rebecca Patterson, global head of currencies and commodities for J.P. Morgan's private bank, says the dollar is taking a beating because of what's happening (or not happening) in Washington. She says, "The dollar is selling off because people are nervous about the fiscal situation and our politicians willingness to deal with it."
Noting the last time there was a government shutdown in 1995 and '96, the dollar fell big time mostly because foreign investors – led by the central bankers – said ‘no thank you’ to the tune of a $11 billion sell-off during that shutdown.
She says "IF" there is a deal tonight or even over the weekend (and that's a very big IF), be prepared to make your move on Monday and then be ready move quickly because there aren't too many investors swooning over the greenback.