European Session – Euro and pound rise versus dollar on risk appetite
October 10, 2013 12:15 pm
Risk appetite is up today, helping the euro and sterling move higher against the dollar, while the safe haven yen fell against the dollar. Futures are trading higher today.
The upbeat mood in markets today could be attributed to some signs of a compromise deal in the US political deadlock after news that there is a scheduled meeting between to the two political parties to discuss the debt ceiling issue.
If the US government is unable to borrow after the October 17 debt ceiling is reached, then it will be at risk of default.It appears that the House Republicans may be open to a short-term increase in the debt ceiling that would allow the US to avoid default.
The US dollar extended against versus the Japanese yen today due to this optimism in the markets that there will be some resolution to the gridlock in Washington.
USDJPY rose to a European session high of 97.88, currently up 0.5 percent on the day.
Also, the FOMC meeting minutes released yesterday showed that some Fed policymakers showed a desire to begin tapering by the end of this year.
US Treasury Secretary Jack Lew will be speaking today and his speech will be closely watched.
The euro moved higher against the dollar after the release of the European Central Bank’s monthly bulletin confirmed forward guidance on interest rates. EURUSD rose 0.4 percent to a European session high of $1.3542, rebounding from an earlier low of $1.3486.
Sterling is moving higher after the Bank of England left the benchmark interest rate unchanged at a record low 0.5 percent and also left its bond purchase program unchanged at £375 billion. The central bank did not release a statement today.
GBPUSD is heading into the US session at a high of $1.5958, up 0.2 percent from an earlier low.
Risk appetite is up today, helping the euro and sterling move higher against the dollar, while the safe haven yen fell against the dollar. Futures are trading higher today.
The upbeat mood in markets today could be attributed to some signs of a compromise deal in the US political deadlock after news that there is a scheduled meeting between to the two political parties to discuss the debt ceiling issue.
If the US government is unable to borrow after the October 17 debt ceiling is reached, then it will be at risk of default.It appears that the House Republicans may be open to a short-term increase in the debt ceiling that would allow the US to avoid default.
The US dollar extended against versus the Japanese yen today due to this optimism in the markets that there will be some resolution to the gridlock in Washington.
USDJPY rose to a European session high of 97.88, currently up 0.5 percent on the day.
Also, the FOMC meeting minutes released yesterday showed that some Fed policymakers showed a desire to begin tapering by the end of this year.
US Treasury Secretary Jack Lew will be speaking today and his speech will be closely watched.
The euro moved higher against the dollar after the release of the European Central Bank’s monthly bulletin confirmed forward guidance on interest rates. EURUSD rose 0.4 percent to a European session high of $1.3542, rebounding from an earlier low of $1.3486.
Sterling is moving higher after the Bank of England left the benchmark interest rate unchanged at a record low 0.5 percent and also left its bond purchase program unchanged at £375 billion. The central bank did not release a statement today.
GBPUSD is heading into the US session at a high of $1.5958, up 0.2 percent from an earlier low.
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