US Session – Dollar gains as US debt talks make progress
October 14, 2013 8:02 pm
Important progress has been made on the US debt ceiling negotiations and markets are Day 14 and just 4 days away from the debt ceiling deadline.
US Senator Harry Reid said today in reference to the talks in Congress that “We’re getting closer” to debt limit and anti-shutdown deal.” He added: “I’m very optimistic we’ll reach a deal this week.”
There are proposals to suspend debt limit through February 7, and in this way an immediate default will be averted by the US government by the October 17 debt ceiling deadline.
It is clear that currency markets were very Washington dependent and investors immediately reacted positively to the latest US debt deal news in the US session, buying back the dollar against the yen. USDJPY rose to a high of 98.55yen by the end of the US session, gaining 0.3 percent on the day.
Euro gave back earlier gains against the dollar, with EURUSD back down to $1.3563. Earlier in the day the pair hit a high of $1.3596. Euro gained against the yen, with EURJPY climbing to 133.70 yen, gaining 0.3 percent during the day.
Gold moved off its day high of $1289.82 and fell to $1,272.83 as the US dollar strengthened.
Important progress has been made on the US debt ceiling negotiations and markets are Day 14 and just 4 days away from the debt ceiling deadline.
US Senator Harry Reid said today in reference to the talks in Congress that “We’re getting closer” to debt limit and anti-shutdown deal.” He added: “I’m very optimistic we’ll reach a deal this week.”
There are proposals to suspend debt limit through February 7, and in this way an immediate default will be averted by the US government by the October 17 debt ceiling deadline.
It is clear that currency markets were very Washington dependent and investors immediately reacted positively to the latest US debt deal news in the US session, buying back the dollar against the yen. USDJPY rose to a high of 98.55yen by the end of the US session, gaining 0.3 percent on the day.
Euro gave back earlier gains against the dollar, with EURUSD back down to $1.3563. Earlier in the day the pair hit a high of $1.3596. Euro gained against the yen, with EURJPY climbing to 133.70 yen, gaining 0.3 percent during the day.
Gold moved off its day high of $1289.82 and fell to $1,272.83 as the US dollar strengthened.
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