Asian Session – Dollar struggles as US gov shutdown damps sentiment
October 2, 2013 6:23 am
The U.S dollar eased lower against the yen in the Asian session on Wednesday as investors are being cautious about when the US government shutdown will end.
A longer lasting shutdown will have a bigger impact on the US economy. Fed tapering will likely be postponed if the deadlock continues. Also the US jobs data – nonfarm payrolls – scheduled for Friday will not be released.
The gridlock in Congress to reach a deal on legislation for funding the US government operations has led to almost a million Federal workers to be sent home without pay.
The dollar revisited Tuesday’s lows against the yen. A larger decline was limited by stronger than expected US data yesterday as the ISM manufacturing index expanded at the fastest pace in almost 2-1/2 years.
USDJPY slipped to an Asian session low of 97.61 yen from an earlier high of 98.07 yen.
Euro hit a seven month high of $1.3587 in European trading on Tuesday, but lost momentum following an unexpected rise in German unemployment. Subsequently the euro fell and hovered at Tuesday lows in Asia today, finding support at $1.3506.
GBPUSD eased down from an eight-month high of $1.6259 on profit taking and is currently down 80 pips going into the European session.
The U.S dollar eased lower against the yen in the Asian session on Wednesday as investors are being cautious about when the US government shutdown will end.
A longer lasting shutdown will have a bigger impact on the US economy. Fed tapering will likely be postponed if the deadlock continues. Also the US jobs data – nonfarm payrolls – scheduled for Friday will not be released.
The gridlock in Congress to reach a deal on legislation for funding the US government operations has led to almost a million Federal workers to be sent home without pay.
The dollar revisited Tuesday’s lows against the yen. A larger decline was limited by stronger than expected US data yesterday as the ISM manufacturing index expanded at the fastest pace in almost 2-1/2 years.
USDJPY slipped to an Asian session low of 97.61 yen from an earlier high of 98.07 yen.
Euro hit a seven month high of $1.3587 in European trading on Tuesday, but lost momentum following an unexpected rise in German unemployment. Subsequently the euro fell and hovered at Tuesday lows in Asia today, finding support at $1.3506.
GBPUSD eased down from an eight-month high of $1.6259 on profit taking and is currently down 80 pips going into the European session.
Related Posts: