US Session – Canadian dollar tumbles as US shutdown weighs
October 8, 2013 8:30 pm
Uncertainty about the US government shutdown and more importantly the looming debt ceiling, remains high and should continue to weigh on the dollar against majors like the euro and pound, as well as against safe havens like yen and Swiss franc.
Today US President Obama gave a press conference from the White House, and called on Republicans to vote to reopen the federal government and increase the nation’s borrowing limit, saying failure to act would create the “significant risk of a very deep recession.”
There are only nine days left until the debt ceiling is reached on October 17th, after which the US will be at risk of defaulting on its obligations if this borrowing limit is not raised.
The US dollar fell against the yen in the US session but is trading higher compared to Monday’s eight-month low. The greenback will likely be under pressure until there is some degree of resolution in the US Congress.
USDJPY touched lows of 96.82 in the New York trade, down from an intra-day high of 97.23 yen.
Euro was supported by the continuing political impasse in Washington. EURUSD traded above key support of $1.3565. The pair ended the session flat after a brief spike to $1.3606.
Sterling found support at $1.6070 after declining from a day high of $1.6123. The weaker US dollar has probably put a floor on GBPUSD at the key level of $1.60.
The most notable move in the US session was in the USDCAD pair, which surged 0.6 percent to a four-week high of $1.0372 from $1.0306. The loonie is vulnerable to a US shutdown and is less favourable in this risk environment compared to the greenback.
Uncertainty about the US government shutdown and more importantly the looming debt ceiling, remains high and should continue to weigh on the dollar against majors like the euro and pound, as well as against safe havens like yen and Swiss franc.
Today US President Obama gave a press conference from the White House, and called on Republicans to vote to reopen the federal government and increase the nation’s borrowing limit, saying failure to act would create the “significant risk of a very deep recession.”
There are only nine days left until the debt ceiling is reached on October 17th, after which the US will be at risk of defaulting on its obligations if this borrowing limit is not raised.
The US dollar fell against the yen in the US session but is trading higher compared to Monday’s eight-month low. The greenback will likely be under pressure until there is some degree of resolution in the US Congress.
USDJPY touched lows of 96.82 in the New York trade, down from an intra-day high of 97.23 yen.
Euro was supported by the continuing political impasse in Washington. EURUSD traded above key support of $1.3565. The pair ended the session flat after a brief spike to $1.3606.
Sterling found support at $1.6070 after declining from a day high of $1.6123. The weaker US dollar has probably put a floor on GBPUSD at the key level of $1.60.
The most notable move in the US session was in the USDCAD pair, which surged 0.6 percent to a four-week high of $1.0372 from $1.0306. The loonie is vulnerable to a US shutdown and is less favourable in this risk environment compared to the greenback.
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