European Session – Euro gains following inconclusive debt ceiling talks
October 11, 2013 12:58 pm
The euro was the main beneficiary of today’s European session, as the outcome of negotiations between Republicans and Democrats to resolve the debt ceiling and fund the US government, was unclear.
During the previous day, President Obama had a 90-minute meeting with congressional leaders, during which the Republican leadership presented a proposal to extend the debt ceiling by 6 weeks. It appeared that one stumbling block preventing a deal was that the Republican proposal did not offer to reopen the government.
The euro gained 0.27% against the dollar at 1.3569. The dollar’s inability to hold under 1.35 in the face of potentially positive news on negotiations between the President and Congress was seen as a bearish factor for the greenback.
In economic data, UK construction output fell -0.1% in August from the previous month, against expectations of a 0.8% increase. Construction output was still up 4.0% compared with the year ago period, compared with a 3.9% expected rise. Sterling fell marginally against the dollar by 0.09%, to 1.5971 but fell a substantial 0.68% against the euro to 0.8495.
Elsewhere, German Final Consumer Prices for September were announced in line with preliminary estimates at an annual rate of 1.4%.
The yen bounced back slightly against the dollar, gaining 0.08% to 98.32, after heavy losses during the previous sessions.
Gold was more or less steady, trading below $1300 an ounce at 1289.89, down 0.04% in the session.
The euro was the main beneficiary of today’s European session, as the outcome of negotiations between Republicans and Democrats to resolve the debt ceiling and fund the US government, was unclear.
During the previous day, President Obama had a 90-minute meeting with congressional leaders, during which the Republican leadership presented a proposal to extend the debt ceiling by 6 weeks. It appeared that one stumbling block preventing a deal was that the Republican proposal did not offer to reopen the government.
The euro gained 0.27% against the dollar at 1.3569. The dollar’s inability to hold under 1.35 in the face of potentially positive news on negotiations between the President and Congress was seen as a bearish factor for the greenback.
In economic data, UK construction output fell -0.1% in August from the previous month, against expectations of a 0.8% increase. Construction output was still up 4.0% compared with the year ago period, compared with a 3.9% expected rise. Sterling fell marginally against the dollar by 0.09%, to 1.5971 but fell a substantial 0.68% against the euro to 0.8495.
Elsewhere, German Final Consumer Prices for September were announced in line with preliminary estimates at an annual rate of 1.4%.
The yen bounced back slightly against the dollar, gaining 0.08% to 98.32, after heavy losses during the previous sessions.
Gold was more or less steady, trading below $1300 an ounce at 1289.89, down 0.04% in the session.
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