Dollar Weakens on Shutdown, Debt Ceiling Pessimism

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Oct. 4 (Bloomberg) -- Bloomberg's Scarlet Fu and Alan Knuckman, senior market analyst at Trading Advantage, put futures in focus with a look at how the U.S. Dollar is fairing during the government shutdown in "On The Markets." They speak on Bloomberg Television's "In The Loop."

Week, it is typically a safe haven, but we are seeing the euro and the yen gain.

This is not about optimism over europe or japan, more about pessimism in the u.s.? it could be but i am optimistic.

I am looking at this action not at what the market is doing but what it's not doing.

The dollar here is near the lowest level since february and that can provide a catalyst for assets like gold and crude oil and stocks.

That money can go back to work in other markets.

It's important to take a look at the usual reaction that for the dollar to ralph -- rally on uncertainty, we have not seen any of that.

That is a positive sign.

We are above where we opened on sunday night.

That is very positive.

The stock market is above the level on sunday might so we have not seen a harsh reaction except or emotions of traders.

What needs to happen for people to really lean on the dollar as a safe haven trade?

I don't keep track of the politics in the news.

Follow the markets, they will know what is happening.

From a reward to risk standpoint, gold and crude are good values.

I am and options traders i am looking at february call spreads that cost about $1500. there is a maximum value of $5,000. good things can happen in gold.

I would rather have see how things respond in the big picture.

From a value standpoint, these markets are strong until proven otherwise.

This week is a good example.

This type of information has not been able to smack the markets down terribly hard.

We hit new market highs in them -- in the nasdaq this week.

We want to predict how the market will react.

So far, the market has been pretty resilient.

Thanks for joining us today.

We are "on the markets" in 30 minutes.

" market makers" is up next.

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This text has been automatically generated. It may not be 100% accurate.

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