Market Adapts to Fed Shutdown: How Liquidity Drives Trading Amidst Economic Uncertainty

In a situation where the US government shutdown has led to the temporary halt of key economic data, FBS, a leading global broker, has released a new market analysis exploring the fascinating dynamics unfolding in financial markets. The unprecedented absence of critical indicators from the Federal Reserve is forcing traders to interpret market movements on their own. Notably, liquidity hasn’t disappeared but rather shifted under the radar, creating an invisible yet powerful force that shapes price action. FBS analysts have observed this shift, with global M2 liquidity indices remaining high despite the lack of official policy communication. This independent data feed has prompted investors to turn to assets like Bitcoin, gold, and bond yields as reliable proxies for the missing economic signals. !